‘Perghh, it’s good to have this strategy. I always drink Starbucks. '
Starbucks and Kenny Rogers Roasters food chain operator in Malaysia, Berjaya Food Group, presented a ‘survival’ strategy to reduce costs without raising prices that could burden consumers.
Clearly the group’s chief executive officer (CEO), Sydney Quays, they plan to sacrifice production cost margins rather than raise prices to consumers.
In general, the effects of the war in Ukraine have triggered price spikes on commodities and have indirectly disrupted supply chains around the world thus forcing food and beverage companies to raise prices.
The string, Quays argues that raising product prices will get strong resistance by consumers who are already angry with inflation so the solution achieved is to control costs with good management.
For the record, Malaysia, which is an importer of clean food, is struggling to control price pressures with the ringgit (RM) declining to a 2 -year low against the dollar last month.
In the past month, Malaysia has acted to halt poultry exports to curb local price increases and extend the price limit for chicken and eggs until June 30.
Even so, Quays insists Kenny Rogers Roasters will not raise the price of their chicken -based food.
