Rising Prices At Restaurants, Food Stalls

[universe2000]

I went to a restaurant in Pattaya off of Thepprasit Road and ordered three dishes with two bottles of water. One dish was 80 baht, one was 60, and one was 40. The water was 15 baht each. When I got the bill the total was 250 baht. I look at the bill and noticed that the 60 baht dish (stir fry vegetables with fish) was written for 100 baht. I asked the person that brought the check over why the menu shows 60 baht. He said that the cook used a different fish which was more expensive, so he charged me 100 baht. What?

The manager came over and said the same thing. He said that he will lose money if he charged me 60 baht. Is this a cultural thing I am not aware of? Is it ok for someone to have a menu with one price listed, but when the bill comes over, the price is different?

Here's another one. I went to a food stall and ordered a dish for 30 baht. The next week I go to the same food stall, same dish, and I am charged 40 baht. Is inflation really happening that fast?

[Beacher]

I went to a restaurant in Pattaya off of Thepprasit Road and ordered three dishes with two bottles of water. One dish was 80 baht, one was 60, and one was 40. The water was 15 baht each. When I got the bill the total was 250 baht. I look at the bill and noticed that the 60 baht dish (stir fry vegetables with fish) was written for 100 baht. I asked the person that brought the check over why the menu shows 60 baht. He said that the cook used a different fish which was more expensive, so he charged me 100 baht. What?

The manager came over and said the same thing. He said that he will lose money if he charged me 60 baht. Is this a cultural thing I am not aware of? Is it ok for someone to have a menu with one price listed, but when the bill comes over, the price is different?

Here's another one. I went to a food stall and ordered a dish for 30 baht. The next week I go to the same food stall, same dish, and I am charged 40 baht. Is inflation really happening that fast?

The first situation with the fish sounds like a complete load of brown smelly stuff. I guess it could also be typically poor Thai business methods, but I suspect it's more likely another shameless scam.

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

[Jingthing]

Overcharging. Race based. It happens a lot. If there is a menu I never pay more than the menu says and I have never had a restaurant not accept this when I point out the menu (not matter the lame excuse). Not that they are happy or that I go back. Sometimes they produce a second farang price menu and say you got the other menu by mistake. When there isn't a menu, of course, anything goes. In those cases, you just have to decide how much abuse you are willing to take and whether your "special price" is worth it to you. This can even happen in places you have been a regular which haven't done it before. The concept of keeping business by treating people fairly may not be as strong in this culture than in the west. On the other hand, the thought process may be that it is fair to charge the farang a higher price. Again, we have the ultimate power to stop giving them business. Before someone points this out, of course Thais also scam other Thais but in my observation not so much as small food places as they do farangs. Also, sometimes the price does go up for everybody, such is life.

Edited February 27, 2009 by Jingthing

[chuang]

Fishy meal.. mate, inflation has gone up sky high...

[OriginalPoster]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That’s just basic economics.

[Jingthing]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That’s just basic economics.

No, basic economics would say raising your price 25 percent will force away a lot of customers, reducing your sales even more. Then what? Raise the prices again? Brilliant.

[Beacher]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Cripes, didn't you bother to read the whole thing? I make a joke and you come back seriously with a bad business recommendation.

Now I remember why I stayed away from this forum for so long.

[OriginalPoster]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Cripes, didn't you bother to read the whole thing? I make a joke and you come back seriously with a bad business recommendation.

Now I remember why I stayed away from this forum for so long.

You interpreted that to be serious and to be a business recommendation?

Maybe I should have called it "Thai economics" instead of "basic economics" and you would have gotten what I meant.

[OriginalPoster]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

No, basic economics would say raising your price 25 percent will force away a lot of customers, reducing your sales even more. Then what? Raise the prices again? Brilliant.

The point that I was trying (unsuccessfully) to make is that there seem to be a lot of cases where Thai merchants are reacting to a reduction in demand by raising prices. Probably in the long run they'll see the futility of that, but in the more touristy areas at least, it seems like a lot of hotels and restaurants are trying to do that.

[Groongthep]

I've also noticed the sharp increase in places (which mostly cater to foreigners) that are now including a 10% service charge. As someone else pointed out in a similar thread about tipping, as long as it is clearly marked on the menu or on the wall that a service charge will be added it is the option of the customer to accept it and order or just leave and go somewhere else.

In theory I have no problem paying the 10% service charge if I know for sure that it is going to the waiter/waitress and the service is reasonably good. Problem is I fear most of the time the owner is keeping the money and the wait staff is getting stiffed.

(I won't pay both a service charge and a tip).

Recently, at the restaurant in a small hotel in Bangkok the manager told me outright that the "service charge" did not go to the wait staff but was to cover the cost of rent the restaurant had to pay to the hotel. When I told her that most foreigners assume that a service charge is for service and should go to the staff she became indignant and claimed I was the one being kee ngok.

I gave the waitress a tip that one time but I will never eat there again.

Edited February 27, 2009 by Groongthep

[Tyke]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Nope, that sounds like Advanced Economics 101. Introductory Economics 102 tells me that if business slows down and you are selling less food then selling at cheaper prices than the competition means overall better chance to sell incrementally more and make the same or more profit. Basic Economics 103 tells me that's why inflation rates come down in a recession. Except in Thailand, which is governed by AstroParaRipEconomics ***.

[misterman21]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Cripes, didn't you bother to read the whole thing? I make a joke and you come back seriously with a bad business recommendation.

Now I remember why I stayed away from this forum for so long.

I agree - this guy obviously doesnt get out much. Too much time with his head up his posterior

[OriginalPoster]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Cripes, didn't you bother to read the whole thing? I make a joke and you come back seriously with a bad business recommendation.

Now I remember why I stayed away from this forum for so long.

I agree - this guy obviously doesnt get out much. Too much time with his head up his posterior

Sensitive people around here. Sorry to have offended you.

[Ricardo]

Fishy meal.. mate, inflation has gone up sky high...

Sky high prices, must have been a flying-fish, then.

[universe2000]

We talked with the manager and he just stood there and assumed that we would pay the higher price. Basically he knew we would not return so he tried to get the most out of us while we are there. I think it is bad business practice and a customer will not return in most cases. Maybe he assumed we would not notice the different price.

As for the food stand, I think the price varies based on who is ordering the food. If it is a local, than they will more likely get the lowest price. If it is a foreigner, than the owner feels they can charge a higher price. I think the owner understands that the person will not return if they find out, but in most cases, the foreigner may not know what the real price is, unless he or she sits around and listens to what others are being charged.

I have decided that acceptance of the two price tiers is needed and just not return to the same place if its bothersome. It is part of the culture.

[billd766]

My wife sells noodles as well as normal Thai food and her price for a bowl of noodles for an adult is 20 baht, the same as last year ans 10 baht for kids. She usually sells out by 2pm every day. She makes a reasonable profit and to my knowledge if someone comes who has no money and is hungry they are never turned away.

It is the way she is, no more and no less

[Jingthing]

I have decided that acceptance of the two price tiers is needed and just not return to the same place if its bothersome. It is part of the culture.

I agree. Acceptance is the only strategy that may keep your sanity. It also makes sense to deny your future business when you feel that is justified. That would be avoidance, also a very useful tool in Thailand.

Edited March 2, 2009 by Jingthing

[desertrat]

I honestly have no idea what anything costs an egg may be 1baht or 20baht, a loaf 20 baht or 120 baht

don't know. I pick up what i need.

Enough basic shopping for at least 10 days from the local market and 7/11..change from 500 baht.

Veg, eggs, chicken 100 baht 4 very large pieces.

At a guess I spend 3000 baht pm on groceries and some of my shopping is at Villa.

The thai food section here has taught me simple cooking, there's even videos on how to.

I

[dumball]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

Cripes, didn't you bother to read the whole thing? I make a joke and you come back seriously with a bad business recommendation.

Now I remember why I stayed away from this forum for so long.

I agree - this guy obviously doesnt get out much. Too much time with his head up his posterior

Sensitive people around here. Sorry to have offended you.

At least no one told you your spelling and grammar is bad , I am finding many of the posters have become hypercritical of just about any one not considered part of the 'In crowd' , never mind , that coupled with the constant repetition makes TV a rather boring spot to visit , they deserve each other .

[Chaimai]

As for the street stall, in that case, his or her better half probably lost their job, and in the never-understandable Thai logic it makes sense to the stall operator that all his or her customers should pay some extra to make up for the family's lost income. (And please, before the "Thailand is absolutely perfect and I will defend it to the death" crowd jumps all over this, I'm only joking.)

If business slows down and you are selling 20% less food then you must increase the price of the food 25% to make up the revenue. That's just basic economics.

No ! That is basic suicide. The smart answer would have been to take down costs in a market where revenues are under pressure - sacrifice profit if necessary. CUTTING prices might increase your market share of the smaller cake.