EATERIES may increase the prices of food on their menus to cope with the higher cost of goods and inflation, industry experts said.

Coupled with rising overheads and the labour shortage, eateries are struggling to stay afloat, they said.

Malaysian Indian Restaurant Owners Association (Primas) vice-president C. Krishnan said the high cost of raw materials, logistics and salaries are stumbling blocks for restaurants.

“We are struggling with everything, we are facing a tough time and high operating costs,” Krishnan told The Malaysian Insight.

“Electricity and water bills have also gone up. I am sure now that operators are still recovering. They are trying to clear their debts.”

To make matters worse, customers too have cut down on their spending, he said.

“Operating costs have increased 30%. Our customers are also being prudent with their spending because of inflation and high prices.”

In the last year, Krishnan said about 30% of restaurants have closed down as they were no longer able to sustain their business.

Primas has 1,500 members who own 3,000 to 4,000 restaurants.

When asked whether its members will raise their prices, Krishnan said it depends on several factors.

“It depends on rental, salary and how much the prices of goods increase. When they feel the pinch, we might have to do so.”

Cost of flour, oil, milk to affect kopitiam prices

Koo Wei How, director of Ho Kow Hainan Kopitiam, an outfit that has been operating out of Petaling Street since 1956, said they may adjust prices next month.

Koo said evaporated milk alone has increased from RM140 per box to RM190. Coffee beans and tea leaves have also gone up in price, he said.

“We are monitoring the price hike. If we need to, we will adjust the price of drinks by 30 sen in October,” Koo said.

As for the staple toast, prices may be adjusted by 20 sen, he said.

“The price of cooking oil has gone up by RM50. There is also the higher cost of eggs and chicken. It’s a struggle.”

The coffee shop had already adjusted its price once this year, by 6% to 10%.

“We have regular customers and they understand why the prices have been adjusted. While we increase the prices, the quality of the food will remain the same as our reputation is at stake.”

Wong Teu Hoon, president of the Pan Malaysia Koo Soo Restaurants and Chefs Association said meat saw the highest price increase by RM10 to RM20.

“Meat is costlier but vegetables are cheaper. We will have to observe the overall price hike before deciding on whether to increase prices,” Wong said.

“The price of pork, a staple in Chinese dishes and dim sum, has increased from RM32 per kg to RM35.

“We are also afraid of adjusting our prices so soon after the last round.”

Johor-based Grand Sea View restaurant owner Teo Wee Wee said prices of pork, seafood, chicken and vegetables have all gone up while the duck was in short supply.

Pirating cost at his restaurant has gone up by 10%.

“We adjusted our prices in June. We can’t be doing that every single month,” Teo said.

“We have to find other ways to break even,” he added. – September 3, 2022.