Many coffee shops – even local ones – have increased their prices significantly over the past few years because of the rising cost of raw materials. However, are the high prices a deliberate choice? Or are coffee shops already generous with their pricing?
Recently, many netizens were discussing the cost of an average drink from a cafe in Thailand versus in Malaysia after a local shared that he paid RM3 for an iced milk tea while vacationing in Thailand.
In the post, the Malaysian said the same drink would have cost him at least double or triple the price if he bought it from a Malaysian cafe. He also questioned how Thai cafe vendors can sell items at low prices despite the cost of materials being the same as in Malaysia.
While there were many reasons behind the difference in pricing, one answer in particular garnered quite the attention. According to one Twitter user, the expensive pricing for drinks started from the international coffee chain Starbucks, which allegedly follows the American Dollar pricing (USD) but converts it to Ringgit Malaysia (RM), thus explaining the higher price.
The user laments that local cafes are simply following the Starbucks pricing rather than using calculations based on cost, which is why an average coffee drink would cost around RM10 to RM15. Many netizens began sharing their opinions on the tweet, with some agreeing that some cafes are overpriced.
However, some pointed out the prices may include other costs like rental and employee wages. While many said they would still pay the price if the coffee is of a higher quality, some also started questioning whether local cafes must stay at “Starbucks prices” or if they can lower their prices but choose not to.
That question also led to numerous answers – but from a business perspective, most said it is possible for a cafe to keep prices under RM10 for a standard latte. However, many explained that businesses typically choose not to keep prices at the lowest so they could make a profit. Some former cafe employees added that higher quality beans and milk would also affect the price, which is why speciality cafes tend to charge higher than chain cafes.
Of course, many netizens still lament that even roadside coffee stalls are selling at “Starbucks prices” while using low-quality ingredients – but do you think the coffee prices at local cafes are justified?
