Starbucks Malaysia operator to sacrifice margin than raise price

Bloomberg

Berjaya Food Bhd, which operates Starbucks and chicken-based restaurant chain Kenny Rogers Roasters outlets across Malaysia, is looking to curb costs internally rather than pass on rising production costs to consumers.
“For us, the last thing we want to do is increase prices. Consumers feel it if you pass the cost” to them, Group Chief Executive Officer Sydney Quays said in Kuala Lumpur. “We may have to sacrifice margin for now and that is what we are prepared to do.”
High commodity prices, stoked in part by the war in Ukraine as well as supply chain snarls that have complicated transport and logistics, have forced food and beverage companies globally to raise their product prices. However, there are signs they may soon run into resistance from inflation-weary consumers.
“There will be some impact due to what’s happening in the global environment, we won’t deny that,” Quays said.