Today 11 March 2006
Of costlier cuppas
Coffee up by 20 cents at some stalls; customers urged to report profiteering
Ansley Ng
[email protected]WITH the price of a cup of kopi-O looking set to rise at coffee shops around the island, the Consumers Association of Singapore (Case) has urged coffee lovers to report operators they think are profiteering.
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Since news about the hike broke last month, Case has received four complaints from irate consumers.
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Sources told Today that some coffee shops have brazenly raised prices by as much 20 cents, even as most people were bracing for an average 10-cent spike.
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Case president Yeo Guat Kwang said he was "disappointed" by coffee shop operators who read the situation as a "green light" to jack up prices.
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If they "really need" to increases prices, they should alert their customers and explain why, he said. "If consumers cannot accept the reason, they can turn to other coffee shops."
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But how about coffee shops that "gang up" to increase prices?
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"The operators cannot leave the consumer with no choice," said Mr Yeo at a press conference yesterday, adding that consumers could report such cases to the Competition Commission of Singapore or to Case. Under the competition law, coffee merchants associations are not allowed to influence the prices set by its members, he noted.
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Two coffee shop associations that have come under flak clarified their stand yesterday.
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The Foochow Coffee Restaurant and Bar Merchants Association and the Kheng Keow Coffee Merchants and Bar Owners Association said they had not asked their members to raise prices, nor did they suggest a uniform price.
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Coffee powder prices had increased "by 50 to 100 per cent over the past year", said Mr Hong Poh Hin, chairman of the Foochow Association. Prices of sugar and milk, together with rental fees, have increased as well, he said.
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"Having a duty to take care of their members, (the association) held a discussion and gave members guidelines in the adjustment of coffee prices," he said. But the decision to raise prices was made by the members individually.
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There's bad news for tea-drinkers, too: Mr Hong said the price of tea traditionally follows that of coffee.
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Both associations, which represent about 700 of more than 2,000 coffee stall operators here, claimed many have yet to raise prices. But a check with 10 coffee stalls in Ghim Moh reflected otherwise. Only three operators told Today they had not adjusted prices.
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The owner of Teck Lee Coffee Stall said she did not want to take advantage of the situation, and that a cup of coffee still cost 70 cents.
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"Of course, I hope to make more money by raising prices. But my customers will be upset," said Mrs Lim. "Some of them have already been grumbling to me about the price hikes everywhere."
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But the pressure could eventually prove too much for Mr Ong of Chiang Kang Coffee Stall. Still charging 50 cents for kopi-O served in a china cup and saucer, he said: "It would be difficult for me to keep paying my bills if I don't increase prices."
