Food sellers pass rising costs to customers


Desmond Davidson Diyana Ibrahim Ravin Palanisamy

Malaysians find post Covid-19 lockdown that the cost of their favourite breakfast fares have gone up by between 22% and 100%. – The Malaysian Insight file pic, August 28, 2022.

EATING out anywhere in the country will definitely set you back a fair bit as food vendors, whether they are operating a market stall, kopitiam or at a mall food court, are passing their escalating food bills to their patrons.

The war in Ukraine, which is causing an increase in the price of  basic ingredients, labour shortages and the new minimum wage are pushing food prices up, food vendors said.

Malaysians coming out of the Covid-19 lockdown have found the cost of their favourite breakfast fares like nasi lemak, roti canai, or mee Jawa, that have gone up by between 22% and 100%.

One food vendor interviewed in a survey by The Malaysian Insight summed up the view of traders by saying, “either we raise our prices or go out of business”, as prices of basic ingredients like wheat, lentils, cooking oil, chicken, dried chilli and even coconut milk (santan) have gone up ever since the Covid-19 restrictions were lifted in April.

The simple Malaysian favourite breakfast of nasi lemak in Kuching now costs between RM6 and RM7, RM3 in Seremban and around RM4.50 for its equivalent, nasi minyak, in Kuala Terengganu.

It’s RM6 for nasi lemak “biasa” (regular), the normal basic fare of rice, sambal and one half boiled egg, while its RM7 to RM8 for the “special” which comes either with a piece of fried chicken or beef rendang in Kuching.

Nasi lemak is more pricey in the capital of Sarawak due to shipment costs from the peninsula to Sarawak.

Prior to the lockdown, nasi lemak in Kuching cost RM3 for “biasa” and RM6 for the special.

Food vendors explain why their prices gone up.

The 33 year-old Jackson says he has to increase his prices by between 50 sen and RM1 or he is not be able to sustain his business. – The Malaysian Insight file pic, August 28, 2022.

Jackson, Kedai Kopi Tak Sama owner in Seremban

The 33 year-old said he has to increase his prices by between 50 sen and RM1, “otherwise I will not be able to sustain my business”.

“I used to buy 2.5kg of Planta margarine for RM26, now it has gone up to RM42. That’s an 11% increase.”

“I have to increase my roti bakar (toast) by 40 sen from RM1.60 to RM2.”

Jackson said he also increased his drink prices, but only by 20 sen.

The kopi-O in his shop, which used to be RM2.50, is now RM2.70

Ahid Bohari thinks the public understands the situation of rising costs and have come to accept it. – The Malaysian Insight file pic, August 28, 2022.

Ahid Bohari, stall owner in Kubah Ria, Kuching

Even though the cost of eating out is now more expensive, the 65 year-old grandfather said his sales are the same as before.

“I suppose people have to eat,” he said.

Ahid, however, thinks the general public understands the situation and have come to accept it.

“Most people care less about price from what I see. That is probably why food delivery businesses, like FoodPanda and Grab Food, are doing brisk business.”

Ahid, who also operates a catering business from home, sells his nasi lemak biasa for RM3 and the special with fried chicken for RM6.

“My rice and my sambal are the two most expensive items in my nasi lemak. Unlike most vendors, I use fragrant rice and my sambal contains anchovies.

“The price of chilli has also gone up.”

Rabiatul Adawiyah, 58, in Kuala Terengganu

Rabiatul said she was forced to hike the price of her nasi kukus because the prices of ingredients have gone up like crazy.

“I used to sell my nasi kukus ayam for RM5 a plate but with everything going up, I have raised it by RM1 to RM6.

“If I raise my price sharply, I will lose a lot of customers.”

“There are some who have complained my nasi kukus is expensive and I have had to explain to them why I raised the price and there is nothing much we can do about it.”

“Even though my son handles the finances and purchasing, I can tell you I’m not making much with that RM1 increase.”

“As a matter of fact, I’m making less than RM500 in profits daily minus daily purchases and I need to be mindful of the shop rent, workers’ salaries, and the utilities bills which I have to settle at the end of the month,” she said.

Tan, a noodle seller says he has no choice but to increase the price of his mee as the prices of most of his ingredients have gone up. – The Malaysian Insight file pic, August 28, 2022.

Tan, noodle seller in Seremban

“I have no choice but to increase the price of my mee as the prices of most of my ingredients have gone up.

“Yes, I am passing the costs to my customers because I cannot absorb them.”

“There’s nothing much I can do if I am to survive in this business.”

“But there’s one consolation. My noodles are still cheaper than those sold in Kuala Lumpur.

Tan sells a variety of noodles for breakfast that includes curry laksa, fish noodles, Vietnam noodles and pork noodles.

Abdul Salam, Restoran Masjid Lama owner in Nilai

Salam said he has had to increase his prices twice since late last year until now because the price of ingredients have gone up.

“Most items have increased between 30 sen and 70 sen.

“Cooking oil went up so much until the government stepped in,” Tan said.

Restoran Masjid Lama sells breakfast favourites like roti canai, nasi lemak, mee goreng, tosai

The roti canai has increased from RM1.20 to RM1.50

The mee goreng (fried mee), Maggie goreng that used to be RM5.50, is now priced at RM6.

The price of the nasi lemak telur goreng (fried egg) has gone up from RM2.50 to RM3.

“We cannot keep changing our prices every month but if the food cost keeps soaring, then we also have to increase.

“That’s how business works.”

Despite the increases, Abdul Salam said “people still come as they understand the increase in price”.

Gopal, tea stall owner in Kuala Lumpur

Gopal said he cannot increase his prices too much otherwise the prices in his stall would be on par with those in fancy restaurants.

“Only 10 to 20 sen increase,” he said.

“Even with such a minimal increase, there are some who are already questioning.”

“Hopefully the prices of goods remain without any exponential increase so that I am not forced to increase my prices.”

Gopal’s stall serves nasi lemak for breakfast, assorted cakes and buns.

Zawiah Muda of Kuala Terengganu

This 50 year-old village food vendor bucks the trend.

She has refused to hike her food prices even though she complains doing business is difficult.

“I pity my customers. Many do not understand why the food prices keep rising.”

“Whether they do or not, all I find is that they want everything cheap.”

“So I’m not going to raise the price of the food I’m selling.

“In my 30 years in this nasi minyak business, I have raised my prices only three times, from RM2.50 to RM3, then RM3.50 and then RM4.50 till now.

Her nasi lemak with fish is RM3 and RM5 with a piece of chicken.

Zawiah said she is not in a hurry to follow other vendors because she caters for people in her village.

“It would probably be a different story if I was running my business in town.”

She makes a profit of RM200 to RM300 a day. Her daily expenses are between RM700 and RM800.

Her best days are Fridays because her food shop is close to Masjid Rusila.

After attending the Friday prayers and listening to the sermons of PAS president Abdul Hadi Awang, the congregations would head to her shop for a quick bite.

Rahman Adam of Adam’s Cuisine at Mydin Food Court, Petra Jaya, Kuching

Rahman, once a freelance journalist, has been in the food business for quite a while. He had even operated the canteen at the Kuching Court complex.

Adam’s Cuisine, which sells western food, opened on June 24.

“I don’t know what I am getting into with food prices going up like crazy, it’s making life miserable for me,” Rahman said.

“You can say some things have gone up 100%. Price of eggs have gone up, cooking oil, which I use a lot, is not always readily available. It’s always out of stock at the hypermarket.”

“When I can’t buy cooking oil in the hypermarket, I am forced to hop from one sundry shop to another to buy the quantity I need since there is a purchase limit of one or two packets at each shop.

He said the prices of meat, lamb and chicken have also ballooned.

“I can’t price myself out. I only started this outlet and if the menu is too expensive, people will not patronise my shop.”

“Cost control is very important to me,” Rahman said.

He said when there is a promotion for the things he needs, he will rush to get them.

“I keep looking out for promotions in all the supermarkets, if not I will have to close shop soon,” Rahman said.

“Profit margin for a food business like mine should be at least 70%. I barely make 35%.”

A co-owner of a cafe at Riveredge, Jalan Tun Abdul Rahman Ya’akub in Kucing

This cafe owner, who did not want to be named, said prices of ingredients are now crazy.

“If we don’t raise our menu prices, we might as well close shop. We will not survive,” he said.

The cafe sells nasi lemak, laksa, soto, mee jawa and mee curry.

The nasi lemak “biasa” was RM4.50 before but it has now increased to RM6.

“The cost of santan (coconut milk), a basic ingredient in cooking nasi lemak rice, has gone up.

“So have the prices of anchovies and eggs,” he added. – August 28, 2022.



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