Roti canai, teh tarik index: rising costs push restaurants to hike prices

KUALA LUMPUR – Renowned for being a staple at mamak restaurants, roti canai and teh tarik may no longer be affordable menu items in Malaysia.

Several mamak shop workers lamented how owners have been forced to raise prices for the popular items to ensure the survival of their businesses. 

Others, such as the owner of a small roadside stall in Jalan Raja Alang, Chow Kit, have yet to raise prices but are prepared to do so if material costs continue to rise. 

Preferring to remain anonymous, he told The Vibes for the time being he has managed to keep his business afloat without charging customers extra, but he is gearing up to raise prices by 10 sen as raw materials costs do not look set to drop anytime soon. 

Customers’ receptivity also appeared to play a big factor for operators, with some owners saying that they have been able to maintain their prices due to the steady flow of patrons, while others noted that consumers are grumbling over price hikes.

“Our prices have not gone up yet, even as it is now customers complain about the cost of goods. If we priced our items any higher, we might just lose our patrons altogether,” said a server at ABC One Bistro in Brickfields here. 

Another worker at Canai Cafe in SS15, Subang, where prices were raised three months ago, said while customers were none too pleased with the increase in prices, the restaurant has had no choice but to keep up with the rising costs of cooking materials. 

“Our customers are angry for sure but what can we do? The price of flour has gone up and we need to make a living as well,” he said, adding that they used to sell roti canai and teh tarik at RM1.50 and RM1.90 respectively, before bumping prices up to RM2 and RM2.20.

Expressing similar sentiments, a server at Restoran Barjana Maju in Taman Alam Megah, Shah Alam pointed out that other menu items are not excluded from price hikes. 

It’s not only roti canai and drinks which have gone up in cost, even our fried rice and noodle dishes have gone up nearly twice the price,” he said, claiming that the restaurant has not increased its prices as much as other eateries thanks to the support of regular customers. 

On the flip side, the owner of Restoran Mee Sham and Roti Doll in Alor Star, Kedah, Mohamed Ibrahim Haliggul Jaman, said he has no plans to increase the price of his roti canai despite the rise in material costs. 

“As of now, our roti canai sales exceed 400 pieces on weekdays and we serve more than 500 pieces over the weekends. (The) high number of orders has allowed us to absorb the cost of ingredients going up.”

He added that while he applies the same concept to teh tarik, he has had to slightly bump up prices for Nescafe and Milo drinks as the costs of the products and milk has increased. 

It is believed that the range in pricing is related to challenges faced by the food and beverages industry, including hikes in operation costs due to manpower issues, the implementation of the revised minimum wage and disruptions to the supply of necessary raw materials. 

In April, local business associations and federations told The Vibes that the government must plan holistic and effective solutions to address labour shortages and an overhang of out-of-contract migrant workers already in the country. 

Additionally, the increased minimum wage of RM1,500 was put in place on May 1, a move that the Malaysian Employers’ Federation urged the government to scrap as it would “kill businesses”. 

It was also reported in May that India had banned wheat exports with immediate effect as it sought to bolster its food security following a decline in production caused by a heatwave. 

Subsequently, Malaysian Muslim Restaurant Owners’ Association (Presma) president Datuk Jawahar Ali Taib Khan said if the price of wheat flour – a major component of roti canai and other local dishes – increases, the cost of raw materials for restaurateurs would follow suit.  

The Domestic Trade and Consumer Affairs Ministry said on Monday that while local supply of wheat flour is stable and sufficient, the production of its subsidised version has been reduced in the market due to price spikes at the global level. 

Meanwhile, the Energy Commission announced on January 28 that the government will impose an electricity tariff surcharge of 3.7 sen kWh for non-domestic users from February to June this year – a significant increase of 85% on the previous tariff. 

In a joint statement, 11 organisations from key commercial and industrial sectors in the country stressed that the surcharge would be a huge burden to businesses and consumers alike.

The Statistics Department said last week that the nation’s inflation has increased by 2.5% due to rising food and fuel prices in 2021, with chief statistician Datuk Seri Mohd Uzir Mahidin saying 184 food items out of 552 in the consumer price index “basket” recorded price increases. – The Vibes, June 11, 2022