KUCHING: Due to global coffee supply shortages and economic pressures, local cafe owners here have been forced to make slight adjustments to their coffee prices.
While some coffee lovers don’t mind the price hike, others are concerned about the rising cost of their daily coffee.
Matthew Chua, the 52-year-old owner of MB Your Food Court, shared how he had dealt with rising prices since opening his business two years ago.
“I started when coffee prices were already going up. Last year, the price of coffee beans increased three times, and now we hear there will be another rise this year because of global supply problems,” he said.
Chua said raising prices was difficult, especially for ‘kopitiam’ owners who served middle- and lower-income customers.
“For fancy cafes, a price increase might not be a big issue, but for ‘kopitiams’, even a 10-sen increase can feel like too much for customers. We’re trying to keep prices affordable, but running a coffee business right now is tough,” he added.
Besides the rising cost of coffee beans, Chua also mentioned the increasing cost of sugar and wages.
“We need to buy sugar at higher prices because we can’t use subsidised sugar. Wages are also going up, with the new minimum wage set at RM1,700. For shops with many workers, this is a big cost,” he said.
Chua has noticed that people are being more cautious with their spending.
“People are more mindful of what they spend, and while regular coffee drinkers will keep coming back, casual customers may visit less often,” he said.
To cope with these changes, Chua plans to offer more premium coffee choices.
“We can’t just raise prices on regular coffee. We need to offer something better, like specialty coffee, while keeping it affordable,” he said.
Despite the challenges, Chua remains hopeful that the industry will stabilise.
Lim Teck Chai, 67, who has run Chopstick Garden for decades, understands the pressure price hikes put on both business owners and customers.
“The price of coffee beans has gone up many times in the past year, but we only raise prices once every one or two years to avoid burdening customers,” he said.
Recently, in Jan, Lim raised his coffee prices by only 10 to 20 sen per cup.
“For ‘kopitiams’, we can’t raise prices too much. If we do, we risk losing regular customers,” he said.
Lim also faces rising rental costs, wages and other mandatory expenses like contributions to the Employees Provident Fund (EPF) and the Social Security Organisation (SOCSO).
His shop uses local coffee beans, but he noted that many suppliers mix them with beans from Vietnam and Indonesia to improve quality.
“Malaysia doesn’t produce enough high-quality coffee beans to meet demand,” he said.
Lim believes prices will keep increasing but is determined to keep his business open as long as possible.
Ardeles Phua, 34, the owner of Peanuts Anchovies and Noms, shared how rising costs had affected his business.
Although he hasn’t raised prices yet, Phua said that profit margins are shrinking.
“We’re feeling the pressure, but we won’t compromise on quality,” he said.
Phua is looking into sourcing beans locally from a Sarawak-based roaster to reduce costs.
“We found a local supplier that’s growing in the industry, and he even exports his beans,” he said.
Phua also noticed that some customers were cutting back due to rising costs.
“Regulars complain about price hikes, but people are still willing to pay for good quality. Coffee is now more than just a drink; it’s a lifestyle,” he said.
Shaifful Sapian, a 39-year-old coffee lover, shared that while he has noticed the price increases, he is not discouraged.
“As a true coffee lover, the price doesn’t stop me,” he said.
He values taste and quality over cost when choosing his coffee.
Rachel, a 41-year-old coffee enthusiast, shared a similar view.
“I didn’t really notice the price hike. When you crave coffee, you’ll pay for it,” she said.
Rachel prioritises taste and quality over price and believes that Malaysian coffee could become more popular if the quality remains high.
Jordan Bong, a 37-year-old coffee drinker, is frustrated with the price increases.
“I’ll probably skip coffee and find something cheaper,” he said.
He also questioned whether Malaysian coffee could ever compete on a global scale, given the strong reputations of neighbouring countries like Vietnam and Indonesia.
As Malaysians adjust to higher coffee prices, the future of the coffee industry remains uncertain. While there are challenges, many cafe owners are optimistic, believing that a balance of quality, price, and customer experience will help them navigate these tough times.
