Your daily coffee has become more expensive.

This isn't about upscale specialty cafes.

Instead, numerous neighborhood coffee shops are increasing their prices by S$0.10 to S$0.30 per cup.

These coffee price hikes could be an early indicator of potential changes across the wider food industry.

It is important to understand the implications for other food businesses, even those not related to caffeine.

Kimly Limited – A Focused Operator of Heartland Coffee Shops

Investors are watching to see if Kimly will follow the trend of raising food prices, given its extensive network of 89 food outlets and 195 food retail establishments.

This is a valid consideration, not only for cost-conscious consumers but also for companies like Kimly that must protect profit margins against increasing expenses in a challenging geopolitical climate.

For the fiscal year ended 30 September 2025, Kimly reported a slight revenue increase of 0.9% to S$322.1 million, with net profit growing modestly by 0.4% to S$33.3 million, indicating a mature local food market.

Despite slow growth, this established neighborhood food provider has sustained a cash-positive operation since 2021.

A key strategy involves purchasing its own coffee shop properties in well-established areas like Serangoon and Yishun, which have high customer traffic to support long-term business expansion.

These initiatives help Kimly stabilize its operations against fluctuating rental costs and enable it to distribute a total dividend of S$0.02 per share for FY2025, consistent with the previous year.

Old Chang Kee – Investing in a Resilient Heritage Brand

When Old Chang Kee began as a small coffee shop selling curry puffs in 1956, few could have predicted its recognition as one of the world's top 20 fast-food chains in 2012.

This success highlights the enduring appeal of a heritage-focused business, which has cultivated loyalty across multiple generations.

For the first half of the fiscal year ending 31 March 2026, Old Chang Kee's revenue saw a minimal increase of 0.2% to S$51.9 million, reflecting uneven performance across its locations.

The company maintains a high-margin business, with a gross margin of 69.3% for 1HFY2026, though gross profit dipped slightly by 0.1% to S$36.0 million due to rising ingredient and labor costs.

Increased operating expenses from depreciation and wages led to a 19.3% decline in 1HFY2026 net profit to S$5.0 million.

Nevertheless, Old Chang Kee concluded the half-year with a strong cash position of S$53.7 million and negligible debt, allowing it to pay a stable dividend of S$0.01 per share.

The firm is expanding into business-to-business sectors and strengthening its presence in high-value locations.

For investors, Old Chang Kee represents a defensive investment in a proven heritage brand that delivers consistent returns.

Food Empire Holdings – A Leader in Instant Coffee

Food Empire specializes in producing instant coffee products, marketed under its acclaimed brands CafePHO and MacCoffee.

If rising food costs lead consumers to shift from eating out to cooking at home, Food Empire is well-positioned to capitalize on this change.

In 2025, the company's revenue jumped 21% to US$576.9 million, boosting normalized net profit after tax by 37% to US$68.6 million, driven by growth across all key business areas.

Notably, these strong results were achieved despite price increases, underscoring the company's pricing strength.

Following this impressive performance, Food Empire's 2025 dividend rose to S$0.12 per share, a 50% increase from 2024 and a record high.

The company is actively expanding its production capacity to fuel organic growth.

For instance, a second spray-dried soluble coffee plant in India, scheduled for completion in 2027, is expected to boost output by approximately 60%.

Beyond organic expansion, Food Empire raised S$41.8 million through share placements and institutional investments to finance growth initiatives and potential acquisitions.