A person surnamed A, who runs a cafe in Gangnam District, Seoul, said this. Since June this year, the cafe has raised the delivery price of its signature banana dessert by 11%. It could no longer maintain the old price as the burden of delivery platform fees piled on top of higher materials and supplies and imported component costs.
A said, "We put off raising prices as long as possible, but we inevitably had to adjust them," and added, "We kept the in-store price for customers who visit the shop, but we had no choice but to raise the delivery price."
◇ Import fruit prices jump… mango and banana desserts see repeated hikes
Cafe and bakery small-business owners who use imported fruits such as mangoes and bananas are growing more worried. With high exchange rates, shipping costs, and poor harvests at the source all overlapping, some shops are responding by raising prices or trimming seasonal menus.
A person surnamed B, who runs a cafe in Goyang, Gyeonggi, also raised the price of the signature "mango sando" in June this year to 7,800 won from 7,500 won. A dessert cafe near Gangnam Station in Seoul likewise recently increased the price of a slice of mango cake to 9,800 won from 9,500 won. The mango cupcake sold last summer was left off this year's seasonal menu.
The surge in imported fruit prices is the cause. According to the Food Industry Statistics Information (FIS), as of on the 2nd, the price of imported mangoes (5 kg) was 51,700 won, up 36.3% from the same period last year. During the same period, cherries rose 26.4%, lemons 20.9%, pineapples 11.7%, and bananas 9.4%.
C, the owner of a cafe in Changwon, South Gyeongsang, where fruit desserts are the mainstay, explained that the cost of ingredients such as fruit is more than half the selling price. Factoring in labor, rent, and electricity bills, profitability does not improve much even after raising prices.
C said, "We raised dessert prices to an average of 10,000 won from 9,000 won, but the share of ingredient costs in the cost price is close to 50%," and added, "If imported fruit prices stabilize, we plan to cut prices then."
◇ "If we raise prices, customers might stop coming"… small-business owners sigh
The problem is that raising prices could drive customers away. Yet if they cut the amount of fruit in desserts, existing customers may say it is "not like before," making it hard for small-business owners to decide.
D, who runs a shaved-ice specialty shop in Dongdaemun District, Seoul, said, "Every time we receive a price list from a supplier, fruit prices go up, and even packaging costs are jumping," and added, "If we raise prices, customers may stop coming, so it's hard to make a prompt decision."
Industry insiders expect fruit prices to keep rising for the time being. Air freight costs that jumped due to the Middle East crisis have yet to fall, and fruit harvests in major producing countries, including Thailand, are poor. To make matters worse, the won has surged to around 1,550 won against the U.S. dollar.
A food industry official said, "In the summer peak season, demand for fruit-based menu items increases, inevitably adding to cost pressures," and added, "It is not easy for factors pushing up imported fruit prices—such as exchange rates and distribution costs—to stabilize quickly."