COFFEE shops serving popular breakfast meals such as eggs and toast and nasi lemak will not be raising prices for the time being following the new ceiling prices for eggs and chicken from July 1.

This is because many of them had already revised their prices upwards earlier this year when ingredients and food supplies began to cost more.

The new ceiling prices for eggs and chicken took effect on July 1, but the operator of Petaling Street institution, Ho Kow Hainam Kopitiam, said they had already revised their prices last month.

The kopitiam’s director, Khoo Wei How, said the price of its soft-boiled egg set was RM3 previously, but after last month’s adjustment, it is RM3.40.

Their nasi lemak, which includes a fried chicken drumstick, was RM13.50 previously, but is now RM14.50.

Khoo said the price revision was the first time the eatery had adjusted prices since the movement-control order last year when only takeaway was allowed.

The kopitiam, founded in 1956, is now drawing long queues for dine-ins, especially on weekends and public holidays.

The decision to raise prices was made amid much angst over scaring customers away and the rising cost of chicken and eggs, which are the eatery’s most-used ingredients, said Khoo.

“The cost of both items increased from April to May, by an average of 13-15%. This prompted us to adjust the prices of our meals,” he said.

Although there was a “shortage” of eggs and chicken in April, around the time when chicken traders in markets began to complain of less supply, the kopitiam thought the situation would ease and made no move to raise its prices then.

“However, we found that the price of chicken was not coming down. From our records, the cost of chicken increased by about 15% from April to June. So we decided on a price adjustment of our food in June,” said Khoo.

He said as a general guideline, the kopitiam will not raise the prices of its meals unless the cost of raw materials rises again and do not come down for more than three to six months.

“It’s only when the cost surges continuously and becomes 15-20% more expensive will we consider another price adjustment,” he added.

Chicken eggs are now capped at 45 sen each (grade A), 43 sen each (grade B) and 41 sen each (grade C) while broiler chicken in the Peninsular Malaysia is capped at RM9.40 per kg, a 50-sen increase from the previous ceiling price of RM8.90 per kg.

Prior to that, there were reports of a chicken shortage caused by inadequate feed supplies due to the Russia-Ukraine war.

Poultry farmers could not get their birds to the desired weight for slaughter in time while disease and the hot weather were also cited as other factors.

It was during these months that coffee shops in Kuantan, Pahang raised their prices of eggs and toast by about 20 sen, said Kuantan Cafe Association deputy chairman Sin Thin Sang.

The price for a set of two soft-boiled eggs is now RM2.80, up from RM2.60 earlier this year, he said.

Having adjusted his food prices earlier this year, Sin said he will hold off doing it again for the time being.

It is too soon following the new ceiling prices of eggs and chicken, he said.

“I’ll continue to monitor the market situation. If the price of eggs continues to go up and production problems are not under control, then we may adjust,” said Sin.

Seberang Prai Coffee, Tea and Food Merchants Association president Lee Kok Yong said most coffee shops are also not moving to adjust prices after the previous hike.

“Some of them had already raised prices in May and dare not do it again. It will scare away customers,” he said.

As things stand, coffee shops are seeing fewer customers than before as people tighten their belts and reduce eating out.

“Inflation is high but salaries have not risen, so people are trying to save a little,” said Lee.

Inflation was 2.8% in May, driven by food inflation, which hit a new high of 5.2%, according to the Statistics Department. – July 19, 2022.