UAE | General
Inflation hits snack prices and sales
Cafeterias all over the country have increased food prices by 20 to 30 per cent, claim residents.
- By Binsal Abdul Kader, Staff Reporter
- Published: 22:14 February 8, 2008
- Image Credit: Ahmed Kutty/Gulf News
- The neighbourhood cafeterias across the country have increased the prices of snacks like burgers but they also have to keep a check on prices of certain popular snacks so as not to lose business to competitors.
Abu Dhabi: Cafeterias all over the country have increased food prices by 20 to 30 per cent, claim residents.
Many cafeteria owners confirmed the price rise but justified it as a reflection of the price rise of commodities. They also said they have experienced a slump in business in the past three to four months.
"I used to have a chicken burger from a local cafeteria for Dh5 but now it costs Dh6, a 20 per cent rise," said Mohammad Obaidi, a Palestinian resident in Abu Dhabi. Another customer complained that prices of sandwiches and juice had also gone up by 20 to 30 per cent.
An Indian who runs a cafeteria on Murrror Road in Abu Dhabi said he had increased the price of burgers and sandwiches by 20 to 30 per cent.
Commodity prices
"It is less compared to the increase in our costs like a 50 per cent price rise for buns used in burgers. But we cannot increase it that much because there is tough competition."
Ahmad M., a partner of a cafeteria on Salam Street, said he had not increased the price of juice because his competitors in the area had not.
"The price of fruit and milk powder has gone up by more than 50 per cent recently. The price of a 10kg box of mangoes had gone up to Dh36 to Dh38 from Dh24 to Dh25. If we did not increase the price of some items, the shop would close."
He said there had been a slump in business for the past three to four months. He said 90 per cent of his customers were Emiratis and other Arab nationals. "I cannot say whether it is due to the price rise, now the business is down."
Ahmad also said increase in rent was a reason behind the price rise in cafeterias.
"I stopped selling mutton sandwiches as the price for mutton went up from Dh230 to Dh240 per 20 kg pack to Dh300," said R.T. He runs two cafeterias in Sharjah.
I.K., who runs a cafeteria-cum-restaurant on Rigga Road in Dubai, said the price of a chicken sandwich had been increased to Dh3.50 from Dh2 to Dh2.50.
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