Tea, coffee prices to go up in Chennai

With a large section of tea shop owners feeling the pinch of increasing rents, power bills, cost of ingredients including tea and coffee powders, your cup of tea or coffee is likely to cost more soon.

E. Sundaram of the Chennai Metropolitan Tea Shop Owners Association, said that around 50% of shop owners were of the opinion that they will be able to manage expenses if they price a cup of tea at ₹15. It has been eight years since the last raise.

“Shop rents, which were ₹15/sq ft are now ₹50/sq ft. Building owners have increased rents saying that they have to pay higher taxes to the Greater Chennai Corporation. Earlier we would give borewell water to customers to drink. But now we have to buy bottled water and give it to them for free,” he pointed out.

T. Anandan who is also with the Chennai Metropolitan Tea Shop Owners Association said that there was no formal announcement regarding the proposed hike. “We have only advised shop owners that they should maintain quality and only then increase rates. They have also been told to ask their customers’ response and take their consent before increasing rates,” he said and added that the hike in price was a very nominal one also considering the competition from bigger chains selling coffee and tea. “They don’t have as much expenses as we have. For us manpower costs are higher,” he said. .

K. P. Rajan, a tea stall owner in ECR at Palavakkam, said that he planned to hike the price of regular tea alone. “I won’t increase the rate of ginger tea. And my increase will be done in a week, after duly informing my customers. I have been telling my regulars about the proposal and most have agreed that it is time I increase rates,” he added.

There are around 6,000 licenced tea shops in the city and around 4,000 that function without any.