SINGAPORE — Some 400 coffee shops under the Foochow Coffee Restaurant and Bar Merchants Association said they have not increased the prices of coffee and tea, a day after it was reported that more than 100 coffee shops had done so because of rising rental and manpower costs.

However, the association declined to commit to whether it would do so in the near future, its vice-chairman Hong Poh Hin said, adding that a cup of coffee at the association’s coffee shops costs between S$0.80 and S$1.20, while rental prices have remained “quite stable or have even gone down” for its members.

On Monday (March 7), Channel NewsAsia reported that 30 per cent of the 300 members under the Kheng Keow Coffee Merchants Restaurant and Bar-Owners Association increased prices of coffee and tea by about S$0.30 after the Chinese New Year period, such that their prices are now about $1.30 per cup. The previous price hike was in mid-2014, the news channel reported.

There are some 1,200 coffee shops in Singapore, Mr Hong said. Asked whether coffee shops being sold at high price tags affect consumer prices because of the subsequent higher rental costs, he said that he has not seen such cases. “As operators, owners and businessmen, we should know how to calculate costs. If prices of food or drinks are high, business would drop.”

NTUC Foodfare outlets have also increased coffee prices by 20 cents. At its 12 food courts, the price of a cup of coffee now starts from S$1, and at its seven coffee shops, it is now from S$0.90.

However, a check with other coffee-shop chains, including Mr Teh Tarik and Wang Cafe, showed no price increases. At Mr Teh Tarik, customers pay S$1 for a cup of coffee at most of its outlets. Coffee shops under the Kopitiam group have not raised prices either.

The Consumers Association of Singapore’s executive director Seah Seng Choon told TODAY that it is monitoring the situation, and operators should explain the need to raise prices when core inflation is currently low.

“Consumers are sensitive to prices changes and will vote with their wallets whenever price changes are not properly justified.” said Mr Seah.

When contacted by TODAY, Mr Alex Yam, who chairs the Government Parliamentary Committee for National Development, said that the issue of coffee price hikes “has been brewing for some time”.

“If it’s material or rental costs (causing the increase), perhaps it’s understandable.

“But for coffee shops that raise prices exponentially without regard for actual rises in operating costs, that’s where it’s an area for concern,” he said.

Ms Lee Bee Wah, who sits on the same committee and has previously talked about rising food prices in Parliament, noted that other major operators seem to be able to cope with rising rental and manpower costs.

“I am inclined to be less sanguine about the reasons given for the price hike,” she said.