THE increasing cost of raw materials has impacted all the traders in Malaysia, especially restaurant operators.
Restaurant Mahsuri 1819 operator Afnan Aiman said the situation is more pressing as it contributes toward the rising cost of living for the public.
“Some families, especially in a middle-income household which used to spend around RM50 a day for daily necessities, are doubling their spending as it can now take up between RM100 and RM120 per day due to the rise in prices,” he said.
As a restaurant operator, he claimed that they had to bear the losses due to damaged items, particularly wet products such as vegetables, because of the difficulty in responding to customer needs.
“We have already incurred losses as a result of the lockdown and now just as we are about to breathe a sigh of relief, we are being burdened by increased food prices,” he lamented to The Malaysian Reserve (TMR).
Afnan further said the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) needs to provide a guideline for traders to increase the prices of goods and what action they would take to restructure the policy to control the prices of goods.
“This is important so that there is no sudden increase as we need to ensure that supply is always sufficient,” he said, adding that the food supply in Malaysia is not enough, therefore it needs to be imported.
“I hope the government is not using this issue for political gains, but instead to help us cope with the current situations in the country which we do not know when (they) will end,” Afnan added.
Similarly, Ali Bistro Restaurant director Ashraf Ariff said the increase in prices is giving food chain operators more trouble than benefits.
“At the current situation, when most of us are going through financial difficulties, the last thing we want to do is increase prices,” he told TMR.
“It is also rather stressful because readjusting the prices, updating the menu, POS and price signboards is quite a hassle,” he added.
This is made considerably more difficult with almost all eateries currently experiencing a manpower shortage. Given the price changes, restaurant owners may be forced to increase their prices to offset the rising cost and to sustain a profitable business.
Responding to that, Ashraf said it might be beneficial purely on the financial side of things but ultimately it is not a good thing.
“The selling point for many mamak operators is that we are very affordable. If we take that away, we will lose our customer base,” he added.
Meanwhile, Malaysian Muslim Restaurant Owners Association president Datuk Jawahar Ali Taib Khan said the hike price issue this time around is worse, given it is saddled with other unresolved problems such as foreign worker shortage and the ongoing salary issues.
“It is quite common for the increased cost to occur due to high demand, especially during the end of the year and festive season,” he told TMR.
According to Jawahar Ali, normally the price will go up for some period of time before it can go back to normal again.
“However, this time it is harder to predict the timeline or when this issue is going to end.
“We have to discuss and sit with the relevant ministries before we can come up with any conclusion,” he said.
Jawahar Ali added that while the situation might give some financial stability to the business, most argued that it is definitely more burdensome for restaurant operators.
It is also not feasible to impose any standard pricing on businesses, as the price is very much depending on each of the restaurant’s rentals, their production volume and concept, as well as the shortage of manpower.”
Nonetheless, he recommends that restaurant operators be reasonable and not to increase the price beyond a reasonable rate.
Recently, KPDNHEP Minister Datuk Seri Alexander Nanta Linggi stated that the ministry has a month to find a complete and comprehensive solution for the price spikes in products and food.
“We have been invited by the government to discuss the matter and we also want to know what can be done on their side,” Jawahar Ali added.
Source: https://themalaysianreserve.com/2021/12/28/restaurants-say-price-hikes-more-burdensome-than-beneficial/