The recent significant drop in domestic fuel prices has not yet had an impact on the selling price of food products at various culinary outlets. Since the last adjustment, the prices of RON92 and RON95 gasoline have shrunk drastically compared to their peak a few months ago. However, on the ground, the price of a portion of local dishes like bun cha or fried rice remains at the same level as when operational costs were at their highest.
Surveys in several culinary areas in Hanoi show that business owners share similar reasons for this price rigidity. They argue that gasoline is only a small cost component compared to other expenses. In contrast, rental costs, labor wages, and the price of basic ingredients like meat and fresh vegetables have not shown a downward trend, with some even remaining high.
Food and beverage (F&B) industry expert, Nguyen Thai Binh, explained that the public often exaggerates the influence of gasoline prices on ready-to-eat food prices. According to him, direct and indirect fuel costs in a restaurant's operations only account for about 3 to 7 percent of the total cost structure. With such a small proportion, the drop in gasoline prices does not automatically provide enough room for business owners to significantly cut their product selling prices.
There are three main expense groups that pose the heaviest burden on culinary businesses today: raw material costs (35-42%), labor costs (15-25%), and venue rental costs (10-18%). In addition to these three components, tax burdens, packaging costs, and food delivery platform commissions also squeeze business profitability, leading owners to choose to maintain prices to ensure operational continuity.
Furthermore, Binh emphasized that a decrease in retail prices for consumers will only happen if fuel price stability lasts for a long period, followed by a decline in logistics costs across the entire supply chain. Until that is achieved, business owners are predicted to prefer promotional strategies, such as combo packages or value-added services, rather than directly lowering product selling prices. Business model efficiency, he added, remains the main key to maintaining competitiveness amid fierce market competition.
