Everything you need to know about the kopi price increase in 60 sec

Last Updated on 2016-05-19 , 1:43 pm

The next time you buy your kopi siew dai and notice yourself paying more than before, it’s probably one of the 100 odd coffee shops that have recently increased its prices for coffee and tea.

This was largely due to the rising rental and manpower costs in Singapore.

For example, 30% of the 300 outlets under Kheng Keow Coffee Merchants Restaurant and Bar-Owners Association have increased their coffee prices by $0.30. It now costs about $1.30 per cup. The last time that they increased their prices was in mid-2014. According to its Chairman, Mr Thomas Foo, each worker earning $4,000 had received a $400 salary increment and rental prices have also been increasing 10%-20% annually.

NTUC Foodfare outlets have also raised the prices of their coffee by $0.20. If you visit one of its 12 outlets, coffee prices now start at $1 while at its seven coffee shops, prices start from $0.90.

Thankfully, this does not seem to be a nation wide trend as some stores have chosen to keep their prices the same. A check with some of the other coffee shop chains such as those under Foochow Coffee Restaurant and Bar Merchants Association, Kopitiam group, Mr Teh Tarik and Wang Cafe showed no increase in prices.

When asked whether the high price tags that coffee shops are being sold would affect consumer prices as a result of higher rental cotsts, Vice-Chairman Hong Poh Hin of Foochow Coffee Restaurant and Bar Merchants Association said that it should not be the case. If food and beverages prices are too high in a coffee shop, business would drop.

To handle increase in manpower costs, the Kopitiam group said that they will offer training for its staff as well as carry out employment under a temporary arrangement.

The Consumers Association of Singapore’s (CASE) executive director Seah Seng Choon said that the core inflation rate is currently low, and if there is a need to increase prices, the operators should provide a satisfactory reason to consumers.