Costly cuppa: Tea, coffee to cost more in city from Sept 1
Noting that the last revision was in 2022, the association said the decision was inevitable, as the cost of essentials such as cooking gas, milk, tea leaves, coffee powder, and sugar has surged sharply in recent years.
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CHENNAI: A cup of tea or coffee at roadside stalls in the city will get dearer, with the Chennai Metropolitan Tea Shop Owners Association announcing a price hike from September 1. Tea price will go up from Rs 12 to Rs 15, while coffee will rise from Rs 15 to Rs 20.
Noting that the last revision was in 2022, the association said the decision was inevitable, as the cost of essentials such as cooking gas, milk, tea leaves, coffee powder, and sugar has surged sharply in recent years.
Besides rising overheads, the traditional tea stalls were facing intense competition from start-ups that are mushrooming, said E Sundaram, secretary of the Chennai Metropolitan Tea Shop Owners Association, adding that several shops have already closed down in areas such as Triplicane and Chintadripet.
“We are buying milk at Rs 65 a litre, tea powder at Rs 640 a kilo, and 200 grams of coffee powder for Rs 250. Prices have been climbing steadily and may rise further. We cannot sell tea and coffee at the existing price and manage our expenses,” said a tea shop owner. The milk prices have been increased multiple times by the private dairies in the last couple of years, the owner noted.
Sundaram told DT Next that the hike in commercial shop rents, electricity charges, water tax, and shortage of labour forces have also affected the business. “Commercial rents are as high as Rs 200 per sq ft, which means around Rs 60,000 a month for an average shop. On top of that, we pay water tax, electricity charges, and even room rent to retain workers,” he said.
The association clarified that the new rates will be implemented gradually so that regular customers are not lost.
