Higher rentals push up prices at some coffee joints

[CityFarmer]

The consequences of the labour crunch are surfacing, together with rental increases...

Higher rentals push up prices at some coffee joints

SINGAPORE — At least three coffee joints here have recently raised prices, citing rising operational costs, especially rentals.

The move comes as the chain operator of S11 coffeeshops increased its drink prices by 10 cents across all 15 outlets at the start of June.

Ya Kun raised prices by 10 to 20 cents starting July 27, citing escalating operating costs leading to a “juncture whereby a price revision is inevitable”, said a notice posted at storefronts dated June 26.

A cup of coffee at Ya Kun now costs S$1.60 instead of S$1.50.

http://www.todayonline.com/singapore/hig...fee-joints

[opmi]

blame the REITs and landlords. But mainly blame the 90s PAP Govt for the 'asset enhancement' policies.

[Stockerman]

it is the start of the end of the regime.. it is coming soon

[specuvestor]

羊毛出在羊身上

When one makes money from asset enhancement, including selling away our power stations, someone has to foot the bill.

As I posted in another thread, it used to be that MAS uses strong SGD to control inflation. But inflation now is not coming from rise of COGS now, it is from OPEX. Stronger SGD is not going to be that effective anymore.

[quantcall]

ya kun has never been cheap....
and nowadays commercial property is even riskier than residential property

[Dividend Warrior]

Survival of the fittest.

For every company who cannot afford the rent, there are many more waiting in line.

Beauty of capitalism!

[specuvestor]

Survival of the fittest.

For every company who cannot afford the rent, there are many more waiting in line.

Beauty of capitalism!

The implication would also be that we should be prepared to live in Mickey Mouse units like in HK, and increased wealth disparity with the rich taipans dictating how the economy should be run. One dollar one vote.

There are many waiting in line to open pubs in Joo Chiat but I'm pretty sure that's not what is optimal.

IMHO policy making should not be SOLELY driven by capitalistic objectives. I also think the oft quoted Darwinian ideology of "survival of the fittest" makes any more sense than "survival of the luckiest". It is heuristically easy to accept but does not conform to observation at large. You may be the brainiest or fittest baby alive but you might not survive in a famine or a Rwanda massacre.