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7 Reasons Why Foods Price Increase in Restaurants

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7 Reasons Why Foods Price Increase in Malaysia Restaurants

Since food price never goes down there is no point arguing. These may or may not be reasons of food price increase in Malaysia. This is some theory or story that you may like to hear !

1. Fuel Price or World Crude Oil Price

I have heard they say this over and over again but when it goes down by 50 dollars none of this restaurant operators say a word about decreasing their soaring high food price. We have a new fuel price which is RON 95 priced at RM1.91 but still no one spill a word of decreasing food price.

Do you think we never notice that you do no need to follow downward but just the upward trend ??

So the RON97 price is RM1.91 in the year 2015 now when the next time local oil price RON95 increase 30 cents like in the year 2016 is another reason for food price increase ??

2. Minimum Wage Policy

It is fairy food policy for all employees working in Malaysia. In order to maintain profitable restaurant business the employee wages in balance sheet of a restaurant must remain 20 to 30% when the percentage goes up due to implementation of minimum wage policy, they will increase the food price maintaining the original 20% while the boss get 70% gross profit.

Food price increase will affect demand !!

3. Goverment Service Tax

This is a tricky one the tax is widening and not increasing tax rate then, why they have this reason of increasing food price ?? They have the right to increase food price in our favorite restaurant but when we do not like it they do not want to bring it down !! I guess majority like it the way treating us we have to pay this money to eat this food since it like the voice of dissatisfied were minority !

Restaurant operators like to use many reasons increasing our favorite restaurant delicious food's price. We just want to eat more foods and save more money eat at there !

4. Bonus and no Bonus

We have salary increment and bonus from a company. Sadly to say some of us do not have it.

5. Shop Lot Rental

Do you ever heard of Increasing of monthly shop lot rental ? That property probably gains in value over time and then there is an inflation in monthly shop lot rental ?? The cost bearer would be transfer to end consumer that will be all of us.

If demand is strong in a place where everyone go there for shopping shop lot rental usually higher

 6. Subsidy

No more subsidy from higher authority means work harder because authorities need fund to do some big projects for the everyone benefits living under the same roof and riding the same boat. Raw food materials price soars due to withdraw of subsidy !

7. Natural Disaster

Flood in many states would resulting rip-off food price. Imagine flood victims lost their homes the demand for foods doubled or tripled for temporary as long as you have money in your hand there is no worry for tomorrow !