16/03/2012 (Bangkok Post) - Restaurant operators are being urged to increase their food prices by a small margin of 6-8 baht a dish to reflect real costs rather than jumping 10-20 baht per item.

Such a small rise could lessen the burden for consumers, said Thaniwan Kulmongkol, chairwoman of the Thai Restaurants Association.

"Out of convenience, operators usually adjust prices by five, 10 or 20 baht to save time finding small change. But this inflates living costs for consumers," she said.

She also suggested operators cut costs by using cheaper raw materials such as smaller eggs to prepare food. Each establishment should set aside low-priced menus as an option for clients.

The association will cooperate with Makro, a cash-and-carry centre, to supply cheap raw materials for its 30,000 members across the country.

Mrs Thaniwan said restaurateurs should keep raw material costs such as meat, vegetables and cooking oil at no more than 30% of operating costs.

"With poor management, such costs can rise to 40% of total costs and that will affect business," she said.

She added too many middlemen in supply chains drive up prices. For example, the price of pork at farms is only 55-60 baht a kilogramme, but food processors have to pay at least 100 baht because of several layers of supply chain.

The Internal Trade Department should assist restaurant operators by providing cheap suppliers under its Blue Flag campaign, she noted.

She counselled the government to advise small food vendors _ an estimated 200,000 street vendors and shophouses _ to increase prices slightly to prevent consumer price shock.

Restaurateurs are more concerned with fuel prices than rises in palm oil, as they can shift to cheaper oil, added Mrs Thaniwan.