Din Tai Fung Raises Prices 5% in Taiwan Citing Higher Costs
Iconic Taiwanese restaurant chain Din Tai Fung has announced a 5% price hike starting next Monday, citing escalating costs of raw ingredients and staff salaries. While tourists and loyal patrons view Din Tai Fung as an occasional indulgence worth the extra cash, broader inflation figures paint a tougher picture.
An hour before this Taipei Din Tai Fung restaurant opens its doors on a weekday... local and international customers are already lining up for a table.
Starting next Monday, the world-renowned Taiwanese soup dumpling chain is raising its prices by five percent... citing increasing costs of supplies and staff salaries.
But some customers don't seem to mind.
CUSTOMER:
"I’m willing to take a train from Tainan to Taipei just to eat Din Tai Fung. So it doesn’t bother me if the price goes up a little. Everything is more expensive now. It’s normal for Din Tai Fung to raise prices too."
Some customers say the price hike may not affect people's daily expenses much... as the chain mostly relies on its brand appeal and long-term patrons.
CUSTOMER:
"To me, Din Tai Fung is not something we would eat on a daily basis. It’s more of an occasional treat. It's also especially a favorite with tourists. I think the price hike is fairly reasonable. Compared to a signature restaurant like this, what regular consumers worry about more might be their neighborhood noodle shop suddenly raising their prices by five or ten Taiwan dollars."
CUSTOMER:
"I think that won't affect me because this is my childhood restaurant. I'd lived here for 50 years, i really love it, I'll keep bringing my friends here. Everything here is much more inexpensive than in Canada. Canada is now crazy."
And it's not just Din Tai Fung that's raising its prices.
Several local food chains also adjusted their prices earlier in the year... And the rising cost of ingredients can be felt at neighborhood food stalls, too.
One stinky tofu vendor in Hualien in eastern Taiwan says he can't take it anymore.
YANG TE-PIN, STINKY TOFU VENDOR:
"I'd been holding back on raising prices but soy beans are getting really expensive, about 40-50% more than before."
The consumer price index in Taiwan was up 2.2% year-on-year in May... passing the inflation alert threshold... and food prices alone were up by 1.36%.
TSAI MING-FANG, ECONOMIST, TAMKANG UNIVERSITY:
"The pressure from rising costs is visible. I think it's quite likely that price increases could go beyond 2.2%."
With the recent rise in grocery expenses and restaurant costs... the real test ahead may be for smaller restaurants and vendors... and the everyday customers who rely on them.
