Why?
The rise in raw material costs. Eg. India banned its wheat exports back in May and we’re now feeling its effects.
Labour shortages. Shortage of migrant workers are giving a tough time to restauranteurs.
Increased minimum wage. The minimum wage of RM1,500 was put in place on May 1.
Increased operating costs. The Energy Commission has imposed an electricity tariff surcharge of 3.7 cents/kWh for non-domestic users from February to June (an increase of 85%).
Rising Roti Rates:
Mamak operators had expressed that customers were upset with the rise in F&B prices, but they were left with no choice.
Some had even bumped their prices from RM1.50 to RM2 per piece of roti.
Not all mamaks raised their prices though, due to high volumes of orders, some mamaks could keep the prices the same.
But this may not be all that it seems.
Shrinkflation:
A possible business operations tactic would be to reduce the size/quantity of a product ie. Shrinkflation.
A combination of inflation plus the shrinking of products by businesses to help offset rising costs.
So, you pay more for goods but get less in return. A double whammy.
Would you notice if your roti got slightly smaller? Or if there were 5 less chips in your Doritos’ bag?
Businesses understand that a higher price tag will cause customer hesitation.
While the practice isn’t illegal, it’s just sneaky. 🕵🏻
Inflation has increased by 2.5% due to rising food and fuel prices in 2021, and it’s likely here to stay. It’ll probably get worse before it gets better. If only inflation also applies to our wages. 💰
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