Knowing that increasing prices will lose customers, many restaurant owners in Hanoi still have to do it because they are afraid of losing business when the price of raw materials in the market is increasing every week.
No increase, heavy capital loss
According to a survey, with the prices of vegetables and meat in the market increasing every week, many restaurants have announced price adjustments with an increase of 5,000 - 10,000 VND/meal.
Mr. Nguyen Van Hung, owner of a roast duck restaurant in Me Tri Ward (Nam Tu Liem District) said that recently, he had to increase the price of his dishes to ensure profit when the ingredients are expensive. Accordingly, the price of roast duck and boiled duck, which used to cost 190,000 VND/duck, has now been raised to 200,000 VND/duck. The price of pho noodles has also increased from 35,000 VND to 40,000 VND/bowl.
“Regular customers were surprised and asked why the price had increased. Honestly, we didn’t want to change the price and had tried to hold out for many days. But we still hadn’t seen any reduction in the price of raw materials. All kinds of vegetables and meat in the market had increased. If I didn’t adjust accordingly, I would lose money. I also didn’t want to import low-quality goods even if the price was cheaper, because that would be trading away the reputation I had built over the years,” said Mr. Hung.
Similarly, Mr. Vu Quoc Vinh, owner of a pho shop on Do Duc Duc Street (Nam Tu Liem District) also said that for about a week now, he has changed the selling price with an increase of 5,000 VND/bowl, so the price of pho will fluctuate according to the new increase from 35,000 - 50,000 VND/bowl.
“Since Tet, the prices of vegetables and meat have increased. Beef is now 260,000 VND/kg, 10,000 VND/kg more expensive than before, and vegetables have also increased. I tried to maintain the old price for a while, but now I have to increase the price. The increase of 5,000 VND per bowl of pho is only equivalent to a few lemons and chili peppers, but it also helps our restaurant avoid losing money,” Vinh shared.
Many street food stalls near Vinh Tuy market also increased the price of each meal by 5,000 VND. For special dishes, the shop owners will adjust the price to match the price of ingredients or sell less than before to avoid losses.
Meanwhile, Mr. Vu Tran Quang, representative of the Huyen Anh vermicelli soup chain, said that the prices of vegetables and meat at the market have increased significantly. After many days of holding out and seeing that things were not going well, Mr. Quang had to change direction. His restaurant chain has gone to food suppliers to get input at a more stable and regular price.
“However, to achieve this, we must commit to always importing large quantities of vegetables and meat from suppliers. This is quite difficult for small businesses, so they are forced to go to traditional markets to import food at fluctuating prices. It is understandable that they have to increase the selling price of their dishes,” Mr. Quang said.
According to a survey, in many markets, the prices of meat and vegetables have increased simultaneously. The price of live pigs started to increase after Tet and has not decreased until now. Initially, the price only increased by 1,000 - 2,000 VND/kg, but after many consecutive increases, the price has increased by 10,000 VND/kg compared to before Tet. The increase in the price of live pigs has forced traders to adjust the price of pork to 130,000 - 200,000 VND/kg depending on the type.
Beef prices also increased by 10,000 - 15,000 VND/kg, to 260,000 - 275,000 VND/kg. Prices of green vegetables increased by 5,000 - 10,000 VND/bunch, kg.
"Grit your teeth" and endure for fear of losing customers
While many restaurants increase prices, many others choose to hold out, waiting for the day when raw material prices cool down.
Mr. Hoang Minh Hoi, owner of Nha Trang grilled spring rolls restaurant (Thanh Cong market, Ba Dinh district) said that in recent days, the price of pork and vegetables in the market has been increasing continuously, making his business difficult. “To make grilled spring rolls, I buy meat and ingredients myself every day, not importing them for weeks or months like many big restaurants. Therefore, the increase in pork prices since Tet has made me extremely anxious because the profit, which was already low due to the small scale of the restaurant, is now shrinking every day. Currently, the price of pork at the market has increased by 25,000 VND/kg compared to before, and only regular customers can buy at that price,” said Mr. Hoi.
According to Mr. Hoi, he imports about 20kg of pork a week to make spring rolls, and the increase in input prices has forced him to spend about 500,000 VND more on meat alone. After a few weeks of struggling, Mr. Hoi has now had to reduce the amount of imported goods to balance the restaurant's expenses.
Not only is the price of pork increasing, but vegetables and fruits are also becoming more expensive, causing Mr. Hoi even more headaches. Because grilled spring rolls require a lot of raw vegetables, Mr. Hoi cannot ignore this ingredient, nor can he import less or limit the amount that customers can use. Therefore, Mr. Hoi is facing the risk of unprofitable business, even loss.
“If I increase the selling price, I am afraid that the already low number of customers will decrease, and if I keep the price the same and reduce the portion size of each meal, I am also afraid that customers will not be satisfied. After many weeks of holding on and thinking, I decided not to increase the selling price to retain customers. At the same time, I recommend that customers limit their use of vegetables to avoid waste and help the restaurant save money. Even so, I am still suffering from unprofitable business, and sometimes even lose money if there are no customers, ” Mr. Hoi added.
Mr. Hoi complained: “With snack products, customers often do not want to spend too much money for a meal. Currently, I am selling at 40,000 - 60,000 VND/meal. If I increase the selling price by 10,000 VND per type, I will ensure the profit, but that price is quite high, so I do not dare to raise the price, afraid that regular customers will find another place or give up their snacking hobby. Now I just hope that food prices in the market will quickly decrease, otherwise we will not be able to maintain for too long. In addition, I will also survey prices in supermarkets, if they are more stable, I will buy there, however, the herbs in supermarkets are not as abundant as in the market.”
Similarly, Mr. Nguyen Van Tuyen, owner of Gia Ngoc beer restaurant (Nam Tu Liem district) also said that "escalating" food prices are causing the business situation of this establishment to decline.
“The weather is still cold, the restaurant’s best-selling item is hot pot. However, this dish requires a lot of fresh vegetables and meat, even if we sell a lot, we still don’t make a profit, it’s really worrying,” Mr. Tuyen said.
Mr. Tuyen said that the restaurant always has to prepare a large source of fresh vegetables and meat. The high prices of these items in the market have caused the cost of importing goods to increase significantly. “The amount of money we spend each time we go to the market can be up to millions. Meanwhile, not every day is crowded with customers. Even when it is crowded, we have to prepare more, the cost increases without any profit. In short, in recent days, we have only seen losses or break-even, but no profit yet.” Mr. Tuyen complained.
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