Coffeeshops facing tough times amid rising costs

Coffeeshops facing tough times amid rising costs

    By Khoo Fang Xuan
    POSTED: 07 Aug 2013 11:37 PM
 
Business appears to be getting tougher for coffeeshops in Singapore. An association representing the shops said rising operation and labour costs are to blame.

SINGAPORE: Business appears to be getting tougher for coffeeshops in Singapore. An association representing the shops said rising operation and labour costs are to blame.

Thomas Foo, chairman of Kheng Keow Coffee Merchants Restaurant and Bar Owners Association, said: "Prices of sugar, coffee powder have been increasing. As for labour cost, it is the increase in levies.

"It is rather difficult to ask operators not to raise prices. A few big coffee joints are already doing so, and the smaller coffeeshops are watching."

In June, coffeeshop chain S11 increased its drink prices by 10 cents across all its 15 outlets.

Ya Kun also recently announced that it would increase prices by 10 to 20 cents.

Mr Foo said some coffeeshops are already calling it quits.

He said: "The operators under our association are asking me, 'Chairman, can you help us look for people to take over our shops?' There are many such voices out there."

- CNA/xq

- wong chee tat :)