SHAH ALAM - Coffee-based drink prices are expected to rise by 50 cents to RM1 per cup in stages.
Thinker Cafe owner Mohd Hafis Khairulah, said that the hike was due to increasing raw material costs, particularly coffee beans and other factors impacting the food and beverage industry as a whole.
"We will gradually restructure the prices of coffee per cup. All coffee entrepreneurs in the country will inevitably raise prices to cover business, utility, and other material costs.
"Not only have coffee bean prices increased, but the 14 per cent hike in electricity tariffs this year also impacts businesses, especially those using espresso machines,” he told Sinar Harian.
Hafis added that coffee bean prices began rising in early January 2024, but the increment was not too significant.
"We absorbed the price increase earlier this year, but this time the hike is too steep, forcing us to gradually increase drink prices,” he explained.
Previously, cafe owners in Malaysia who imported coffee beans and sold speciality coffee faced challenges in rethinking their pricing strategies as coffee bean prices reached historical highs.
Costs of coffee beans, particularly from major suppliers like Brazil and Vietnam, were expected to continue rising into 2025 due to adverse weather conditions and supply shortages driven by high global demand.
Zahid Izzani, the owner of Garis Kopi, believed that coffee-based drink prices would rise by around 20 per cent to 30 per cent, aligning with the increase in coffee bean costs.
"The price hike is necessary to maintain profitability and cover rising costs of other materials,” he said.
However, Zahid noted that his business was able to sustain existing prices.
"It depends on the coffee bean suppliers. If prices rise too steeply, we will have no other choice,” he added.
He acknowledged that the rising costs would particularly affect small-scale entrepreneurs in Malaysia.
Zahid urged coffee lovers to understand and adapt to the price increase.
"We differ from franchise companies in trying to maintain consistent prices while delivering premium coffee flavours. We use only the best quality coffee beans for enthusiasts,” he said.
Coffee Entrepreneurs Encouraged to Use Local Coffee Beans
Coffee shop operators are encouraged to switch to local coffee plantations as coffee bean prices have reached a record high.
Federation of Malaysian Consumers Associations (FOMCA) Treasurer General Nur Asyikin Aminuddin said that if there was an increase in coffee bean prices from producing countries, local businesses would feel the impact.
She said that this was because the majority of local entrepreneurs relied on coffee beans from foreign countries.
"We need to accept the reality of this increase because we depend on foreign sources. If they raise the price of coffee beans, we will feel the impact as well,” she said on Monday.
In this regard, Asyikin said that coffee bean farmers could take this opportunity to market local coffee beans more aggressively to coffee shop operators.
She said that this would help all coffee shop operators become aware of the availability of local coffee beans.
Asyikin also advised consumers that coffee-based drinks were not a basic necessity but more of a desire for the current generation.
According to her, consumers needed to make smarter choices when selecting coffee and were encouraged to try adapting to the richness of local coffee.
"Besides being able to enjoy coffee at a more reasonable price, we can also support local products together,” she said.