Price of Beverages in Cafes: The Competition Council Opens Dialogue

Friday 24 May 2024 - 16:25

Amidst the controversy surrounding the surge in beverage prices at cafes, the Competition Council has taken a decisive step by convening a listening session yesterday, Thursday, at the council's headquarters. Representatives of professionals affiliated with the National Federation of Cafe and Restaurant Owners of Morocco were invited to participate.

During this meeting, Ahmed Rahhou, the President of the Council, underscored the importance of adhering to the law on price freedom and competition. He emphasized that the law unequivocally guarantees price freedom and competition.

In a statement following the meeting, Ahmed Boufkrane, the National Coordinator of the National Federation of Cafe and Restaurant Owners, highlighted that discussions with Mr. Rahhou addressed a range of issues pertinent to the sector. Primarily, the focus was on "the sudden fluctuations in raw material and base prices and their impact on competitiveness," particularly concerning coffee, which has experienced an unprecedented rise in the national market. He added that during the listening session, both parties expressed their willingness to collaborate to maintain price equilibrium in the national market.

Subsequently, sector representatives presented the main outlines of the draft law governing the sector to the council members, an advisory body of the government and parliament. The aim of this draft law is to "reduce or eliminate the chaos prevailing in the cafe and restaurant sector in Morocco." Boufkrane further clarified that the council members affirmed that professionals at the national bureau level are well acquainted with the law on price freedom and competition, as well as all the regulations that contradict it. Therefore, it is essential to raise awareness among the regional and local branches of the federation regarding these issues.

It is worth noting that on April 30th, the Competition Council announced that preliminary investigations conducted by its competent services had revealed elements suggesting that certain cafe owners and managers were contemplating a potential increase in the prices of beverages served in cafes. Stressing that if these facts were substantiated, an investigation would be initiated on the matter.