Teo (centre) presents an incentive to an association member’s child during the AGM.
KUCHING: The price of coffee powder has gone up by RM2 per kilogramme, but consumers may not be expected to fork out more for coffee beverages.
Kuching Coffee Shop and Restaurant Owners Association chairman Teo Giat Liew said many coffee shop operators would not hike the prices of beverages just because of the increased cost of one ingredient.
“There are a lot more factors to be taken into consideration before deciding to review the prices of beverages. It is a fact that the price of coffee powder is now RM2 more per kilogramme—effective New Year’s Day—but it does not mean we would review the prices of coffee beverages.
“If we can absorb the additional operating cost, which we usually do, we will not simply increase the prices of beverages,” he said when met during the association’s annual general meeting (AGM) here yesterday.
Teo explained many coffeeshop operators had been burdened by rising rental fees, but they chose not to increase prices of beverages as they are also worried about losing their customer base, not to mention the need to comply with the Price Control and Anti-Profiteering Act 2011.
He said the authority could take action against coffee shop operators who set unreasonable prices under the Act.
“Many of us are now facing higher rent (expenses), but I cannot tell you a range. It is safe to say that a 20 per cent hike at least is involved.
“Labour cost is another factor that contributes to higher operating expenditure. There was a time when we paid only RM400 to RM500 per foreign worker. After the implementation of minimum wage, we have to pay RM920 per worker, a cost which used to be RM800.”
He further disclosed that it costs employers between RM6,000 and RM7,000 to hire a foreign worker, including agent fee, visa application and levy.
When asked about consumer complaints about varied prices of beverages here, Teo said the association had not received any such complaints.
He said the association had no jurisdiction over prices particularly after the enactment of the Competition Act 2010.
He recalled that the association used to set ceiling prices for various beverages which members were advised to follow.
“After Parliament enacted the (Competition) Act, we no longer set ceiling prices. Our role now is to advise members not to exorbitantly price their beverages.”
He said consumers who were not happy with beverage prices could report it to the state Domestic Trade, Cooperatives and Consumerism (KPDNKK) for action.
To date, the association has over 400 members. It is estimated that there are over 1,000 coffeeshop operators in and around the city.