How Our Canteen Food Prices Remain Low?

A recent study released by one of the teachers in college revealed that our canteen food prices are relatively cheaper as compared to other Junior Colleges in Singapore. Furthermore, most of our stalls are open even during examination periods when patronage is low.

The inflation rate in Singapore is going north, causing the cost of production to increase. We wonder how our canteen stall vendors are still able to sell their menus at cheap prices. The low variety of dishes and food made available explains it all. Our stall vendors are buying their production inputs in bulk. Buying in bulk allows them to enjoy economies of scale, thus lowering costs of production. They then pass the reduction in costs of production to students in terms of lower prices.

However, such a practice means lower variety of food and beverage enjoyed by students. There are lesser choices for TPJCians to enjoy their breakfast or lunch in college. I like to define this as a 'lower standard of schooling'.

Besides enjoying economies of scale, our canteen stall vendors are also competing against the Student Cafe. In order to make sure the food and drinks sold in the canteen are still attractive, our canteen stall vendors are forced to keep their prices low, or risk losing their customers. The Student Cafe also engages in the competition by introducing daily promotions such as the popular 'Tantalizing Tuesday'. The food sold by the Student Cafe and our canteen are relatively close substitutes, in terms of how well it can fill the stomach for the rest of the day. Two packets of sandwiches sold in the Student Cafe can fill your stomach like how a plate of chicken rice with side menus can at almost the same price.