A Cup of Coffee and Tea Now More Expensive, Effects of War Starting to Feel in the Culinary Sector
The intensifying conflict between Iran, Israel, and the involvement of the United States is contributing to global economic turbulence. The closure of the Strait of Hormuz, a vital route for world oil distribution, has caused energy prices to rise, impacting costs for electricity, gas, and the distribution of raw materials.
The effects are beginning to be felt in various sectors, including the food and beverage business. Several coffee stalls in neighbouring countries are starting to increase prices for drinks such as coffee and tea to keep operations running amid the surge in costs.
In Singapore, a number of traditional coffee shops have reportedly begun raising drink prices by around 10 to 30 cents, equivalent to Rp1,300 to Rp3,900 per glass, assuming an exchange rate of Rp13,000 per Singapore dollar.
One of the first to make adjustments is a cafe in the MacPherson area. The establishment previously posted a notice to customers that from 1 April, all drinks and some food menu items from their tenants would experience a price increase of around 10 to 20 cents.
Not only that, several other shops are also taking similar steps. The owner of another cafe in Bedok said they would raise prices for some drinks by at least 10 cents per cup starting from 1 May. They will also apply the same policy to three other cafes they own located in migrant worker dormitories.
According to him, even during the Covid-19 pandemic, he did not raise prices at those three locations. However, the current surge in gas and electricity costs has made the situation difficult to maintain.
“We really can’t take it anymore,” he said, as quoted from Mothership, Friday, 24 April 2026. “We have to make adjustments.”
The manager of a beverage kiosk at Block 116 Toa Payoh Lorong 2, which had already raised prices by 10 cents per glass in April, conveyed something similar. They emphasised that price adjustments are necessary to keep the business running and hope customers can understand the situation.
Regarding this, Hong Poh Hin, Chairman of the Foochow Coffee Restaurant and Bar Merchants Association, stated that coffee shop operators are indeed facing increases in various costs of up to 20% since early 2026. Electricity bills are also expected to continue rising in the coming period.