DIT to push food vendors in Thai shopping malls to decrease prices of ready to eat meals

[webfact]

DIT to push food vendors in shopping malls to decrease prices of ready to eat meals



BANGKOK, 8 May 2014 (NNT) - Mr. Santichai Sarathawanpat, Deputy Director General of Department of Internal Trade (DIT), revealed that his department would meet with operators of modern trade and shopping malls next week, asking them to persuade food vendors operating in the malls’ food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers’ financial burden.

Earlier shopping malls’ owners claimed that the measure was rather difficult to put into practice as vendors have to shoulder high rental fees and other related costs, adding that malls have certain groups of customers who should be able to afford expenses of dishes that are slightly more expensive than those offered in the modern trade malls.

Mr. Santichai said high on the agenda of next week’s meeting is to inspect the progress of establishing a Blue-Flag food court in shopping malls. The meeting will also find out whether the rate of space rentals for food vendors in such malls is appropriate or not.

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices.


-- NNT 2014-05-09

[terryp]

WHAT!!!!! .. i bet many dont even make 20% proit on a meal, this Country is insane far too many tell people how to live & run their business etc but cant even run a government properly

[Soutpeel]

asking them to persuade food vendors operating in the malls’ food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers’ financial burden.

Why don't the DIT subsidize this then ?

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices

My dear director, we are talking about Capitalism here, malls set their rentals and the food vendors enter into contracts accepting that rental, if you had suggested trying to negotiate with shopping malls for lower rentals to help the vendors that's a good step, but suggesting taking legal action because something is "unfair"....Well what can one say, except your an idiot...

[robblok]

WHAT!!!!! .. i bet many dont even make 20% proit on a meal, this Country is insane far too many tell people how to live & run their business etc but cant even run a government properly

Tell the mall to take a cut in rental fees and the food vendor a bit of a cut in price. That way its honest.

But why would food vendors have to lower their prices.. it just shows that there is a lot of inflation that the goverment isnt ready to admit.

It all started with that stupid wage raise (not that I am against a raise but 60% is a big raise) because that meant inflation automatic.

Just like how rice paddies became more expensive to rent the moment the rice program was done.

This government is so incompetent its unbelievable.

[robblok]

asking them to persuade food vendors operating in the malls’ food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers’ financial burden.

Why don't the DIT subsidize this then ?

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices

My dear director, we are talking about Capitalism here, malls set their rentals and the food vendors enter into contracts accepting that rental, if you had suggested trying to negotiate with shopping malls for lower rentals to help the vendors that's a good step, but suggesting taking legal action because something is "unfair"....Well what can one say, except your an idiot...

You were just faster with remarking about the mall prices.. i was typing it but you had posted it. Tell the malls to lower their rental fees then those small shops can lower their prices too. Why should they shoulder it alone.

[bkkjames]

Supply and demand - you don't like the prices being : eat somewhere else.

[hanno]

I agree: all this little thought out schemes by the government have led to massive inflation and price increases, but they now ask the food vendors to shoulder the burden. They have to be bloody joking!

[Local Drunk]

Supply and demand - you don't like the prices being : eat somewhere else.

Exactly! But I'd call it relative value.

Edited May 9, 2014 by Local Drunk

[trogers]

I agree: all this little thought out schemes by the government have led to massive inflation and price increases, but they now ask the food vendors to shoulder the burden. They have to be bloody joking!

Hey, just increase min. wages by another 20%, buying rice from farmers at Bt25,000 per tonne, and

tax refund for the 2nd car...and all will be well to balance the 20% increase in food prices.

[Asiantravel]

And this problem is not only in Thailand!

It's sheer criminality that governments around the world are downplaying the extent of food price inflation. In supermarkets they can hide it more by downsizing the product surreptitiously (see the video below- Look at the video at 2. 30 min where they mention a range of items that have gone up in price ), but in these shopping mall food courts its simply impossible for them to lower prices because the raw material costs are increasing so rapidly. In India where onions are a huge part of their diet the cost has increased by a whopping 323%.

Price reductions are never going to happen. I wholeheartedly agree with others in this thread when they say shopping centre owners should reduce their rents so the vendors are no worse off.

Edited May 9, 2014 by Asiantravel

[Pib]

Sure Mr. Santichai Sarathawanpat, Deputy Director General of Department of Internal Trade (DIT), I will lower my prices by 20% once you lower my raw food and labor costs by 20%...or you lower my rent by 20%....or the govt starts giving me a 20% subsidy....or when I decide I'm going to bankrupt myself. Yes, yes, I have so many different ways to lower my prices by 20%...thank you for bringing this to my attention...you are awesome...vote PTP.

[Tomtomtom69]

I really doubt that consumers that choose to eat at a shopping mall, the vast majority of whom are middle class and arrive at said malls by car (despite the fact that public transport in Thailand is fantastic and goes everywhere) would really feel the difference if a meal was 5-10 Baht cheaper. Besides, many of these same consumers would rather eat at Fuji, MK, Burger King, McDonalds, Black Canyon, Shabushi, Pizza Company, Scoozi and any number of other chain restaurants where each diner is likely to spend a minimum of around 200-300 Baht (and in many cases much higher) per person. Those that choose to eat at the food court often do so because it's quick but not necessarily because they can't afford anything else. In any case if the food court prices are too high, then just go out to eat on the streets, simple.

I've never heard of a government trying to force food prices in shopping malls down in any other country...imagine if the Australian government told "The Curry House" or "Indian Home Diner" etc. to lower the price of it's 3 veg curries + rice lunch special from $10 down to $8.50 because consumers can't afford the higher price. Yeah, right...like that would work.

Edited May 9, 2014 by Tomtomtom69

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

WHAT!!!!! .. i bet many dont even make 20% proit on a meal, this Country is insane far too many tell people how to live & run their business etc but cant even run a government properly alt=bah.gif>

Tell the mall to take a cut in rental fees and the food vendor a bit of a cut in price. That way its honest.

But why would food vendors have to lower their prices.. it just shows that there is a lot of inflation that the goverment isnt ready to admit.

It all started with that stupid wage raise (not that I am against a raise but 60% is a big raise) because that meant inflation automatic.

Just like how rice paddies became more expensive to rent the moment the rice program was done.

This government is so incompetent its unbelievable.

Nothing the PTP has done has been brought to fruition , there was always a f!!!k up somewhere , Flood mitigation, environment ,people trafficking , southern problems , Rice scam , (the 2.2tn bht loan deal thank Christ was axed), logging ,drinking water, all important issues that where talked about, but nothing achieved.

[shirtless]

You cannot stop progress, electricity up gas up rents up wages up , I dont think there is enough fat in there bottom line to absorb these price increases without increasing prices.

[lee b]

Wait, i thought that food prices have gone up? What would be the outcome of getting these guys to drop there prices??

[Thai at Heart]

asking them to persuade food vendors operating in the malls food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers financial burden.

Why don't the DIT subsidize this then ?

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices

My dear director, we are talking about Capitalism here, malls set their rentals and the food vendors enter into contracts accepting that rental, if you had suggested trying to negotiate with shopping malls for lower rentals to help the vendors that's a good step, but suggesting taking legal action because something is "unfair"....Well what can one say, except your an idiot...

Subsidies are soon to be officially outlawed as populist and extremely dangerous for a politicians career.

[cmsally]

So presumably he has also contacted McD, Starbuck, KFC, Burger King et al and asked them to lower their prices too !

[selftaopath]

How can these power mongers understand free enterprise when Thailand is full of government sponsored monopolies?

Edited May 9, 2014 by selftaopath

[wandasloan]

Sure Mr. Santichai Sarathawanpat, Deputy Director General of Department of Internal Trade (DIT), I will lower my prices by 20% once you lower my raw food and labor costs by 20%...or you lower my rent by 20%....or the govt starts giving me a 20% subsidy....or when I decide I'm going to bankrupt myself. Yes, yes, I have so many different ways to lower my prices by 20%...thank you for bringing this to my attention...you are awesome...vote PTP.

You could go to work for the government. If you think lowering the rent by 20% equals a government subsidy of 20% equals a product discount of 20%, you are fully qualified to advise the DIT. You're just not qualified to do actual business even as a food court vendor. Or maybe especially as one, since it's very tricky to come out ahead in that business.

.

[Emilp]

That's good for me.

[bigbamboo]

Have the DIT ever thought that if the government decreased their corruption the people would be able to afford to pay the vendors very fair prices.

[marko kok prong]

Sounds like Dit are on the same planet as Tat.

[belg]

just put more pressure in the poor vendors ... higher lease and lower income = close shop soon

but no problem for the shopping mall owners, some families are the richest in this country, so the next lease taker can take their place, after paying a startup fee

[Emster23]

I would love to see them make a counter offer: we will lower prices 20% if you cut your bribes, kickbacks and fines 20%. Or perhaps lower the VAT tax down to 5%?

[impulse]

It's always possible for the vendors to reduce their cost of what they're selling by 10-20%. But I don't want to eat the result.

I'd rather they keep quality the same (or even improve it) and charge what they need to charge to make a living. Then it's our choice where we eat.

[scorecard]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

asking them to persuade food vendors operating in the malls’ food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers’ financial burden.

Why don't the DIT subsidize this then ?

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices

My dear director, we are talking about Capitalism here, malls set their rentals and the food vendors enter into contracts accepting that rental, if you had suggested trying to negotiate with shopping malls for lower rentals to help the vendors that's a good step, but suggesting taking legal action because something is "unfair"....Well what can one say, except your an idiot...

Another reason why reforms are urgently needed, in this case overall policy that means the only most capable, proven high performance people are in jobs like the minister, the director / deputy director etc., of this and all other gov't, departments and agencies.

[rubl]

I really doubt that consumers that choose to eat at a shopping mall, the vast majority of whom are middle class and arrive at said malls by car (despite the fact that public transport in Thailand is fantastic and goes everywhere) would really feel the difference if a meal was 5-10 Baht cheaper. Besides, many of these same consumers would rather eat at Fuji, MK, Burger King, McDonalds, Black Canyon, Shabushi, Pizza Company, Scoozi and any number of other chain restaurants where each diner is likely to spend a minimum of around 200-300 Baht (and in many cases much higher) per person. Those that choose to eat at the food court often do so because it's quick but not necessarily because they can't afford anything else. In any case if the food court prices are too high, then just go out to eat on the streets, simple.

I've never heard of a government trying to force food prices in shopping malls down in any other country...imagine if the Australian government told "The Curry House" or "Indian Home Diner" etc. to lower the price of it's 3 veg curries + rice lunch special from $10 down to $8.50 because consumers can't afford the higher price. Yeah, right...like that would work.

Food courts are everywhere and in Bangkok mostly used by office workers. Maybe they'd rather eat a 200-300 baht meal every lunchtime, but with 10,000 - 20,000 salary a month that's out of the question.

As for 'fantastic public transportation", I think it's more "with high frequency". Still if I would want to take a bus from my home to BTS Victory Monument in the morning I'd probably need to start going by 6AM or get stuck on Ratchawithi or RamaVI. Some collegues are in the office before 8AM because of similar situations.

So, welcome to the real world of Bangkok as normal Thai see it.

[robblok]

I really doubt that consumers that choose to eat at a shopping mall, the vast majority of whom are middle class and arrive at said malls by car (despite the fact that public transport in Thailand is fantastic and goes everywhere) would really feel the difference if a meal was 5-10 Baht cheaper. Besides, many of these same consumers would rather eat at Fuji, MK, Burger King, McDonalds, Black Canyon, Shabushi, Pizza Company, Scoozi and any number of other chain restaurants where each diner is likely to spend a minimum of around 200-300 Baht (and in many cases much higher) per person. Those that choose to eat at the food court often do so because it's quick but not necessarily because they can't afford anything else. In any case if the food court prices are too high, then just go out to eat on the streets, simple.

I've never heard of a government trying to force food prices in shopping malls down in any other country...imagine if the Australian government told "The Curry House" or "Indian Home Diner" etc. to lower the price of it's 3 veg curries + rice lunch special from $10 down to $8.50 because consumers can't afford the higher price. Yeah, right...like that would work.

Food courts are everywhere and in Bangkok mostly used by office workers. Maybe they'd rather eat a 200-300 baht meal every lunchtime, but with 10,000 - 20,000 salary a month that's out of the question.

As for 'fantastic public transportation", I think it's more "with high frequency". Still if I would want to take a bus from my home to BTS Victory Monument in the morning I'd probably need to start going by 6AM or get stuck on Ratchawithi or RamaVI. Some collegues are in the office before 8AM because of similar situations.

So, welcome to the real world of Bangkok as normal Thai see it.

Great point, some people have no clue how real people live. Food court is for the office workers on the salary you mention. So many here have no idea about normal Thais.

[Benmart]

asking them to persuade food vendors operating in the malls food courts to reduce prices of ready-to-eat meals by 20% or 5-10 baht, in an attempt to lift consumers financial burden.

Why don't the DIT subsidize this then ?

The DIT Deputy Director General said the department may resort to legal measures to help food vendors in shopping malls if it finds the current rental rate is unfair, as expensive rental fee is a major factor driving food vendors to set high meal prices

My dear director, we are talking about Capitalism here, malls set their rentals and the food vendors enter into contracts accepting that rental, if you had suggested trying to negotiate with shopping malls for lower rentals to help the vendors that's a good step, but suggesting taking legal action because something is "unfair"....Well what can one say, except your an idiot...

While I agree with most of your post, I try to refrain from name calling. It serves no purpose and there are numerous alternatives to describe someone's lack of intelligence.

Attacking the policy, yes. Attacking the person, probably not.

Edited May 9, 2014 by Benmart

[CantSpell]

Next they gonna ask the rice farmers to reduce their price so that mall's meal get cheaper ...