AISG’s Café’s Vicious Plans on Monopolization

By Michael P.

Although AISG Café prices rarely change, the average price of the café foods has always been considered high. As the gap between the prices of commercial cafes and AISG’s café get larger and larger, many students start considering the reason behind the rising prices. 

It may seem reasonable to charge more for snacks and drinks towards international school students since there are financially stronger when compared to the average citizen of Guangzhou. The truth is that AISG’s café is over the line. 

ISA International school (Inquire Succeed Act International Education Group), being another international school in Guangzhou, offer a wider range of snacks and drinks while being a few rum cheaper than AISG’s café snacks. When comparing the price of snacks in both school’s café’s, the price of AISG’s café suddenly seems less economical, reasonable, and considerable. 

 For instance, ISA’s café offers hot chocolate at 18 rmb per cup, while AISG’s café offers chocolate milk for 20 rmb per cup. When all the factors are considered, chocolate milk is worth less because of the smaller amount of chocolate. At 2 rmb less, ISA’s students can get a hot chocolate which is more expensive to produce because it requires materials that are more expensive to produce it.  

 “Right. They can also, like we don’t, we don’t expect it from the school side.” Explained Mr. Lefebve, the director of facilities and school services. ”You know the school is not-for-profit so which means you know we only provide service to students and our faculty from the any any of the service the school won’t added any profit.[Sic]” 

 AISG’s café has no need to pay rent to the school but stills maintains a high price when compared to other cafes outside. In addition, cafes in metropolitans offer better service, environment, and goods for almost two thirds the price. 

 “So indeed, with no doubt the cafe food is overpriced.” An 11th grader studying at AISG explained. “If doing a comparison between the cafe in our school and some other cafe in the metropolitan part of the city, it is aghast to find out that while the cost of production of the goods produced by our cafe is way lower than those in the CBD, the goods our cafe supplies to us is even more expensive than those large, rental-heavy fee in the CBD.” 

 Although many claim that the reason behind the high prices of goods is caused by the lack of customers that purchase café goods. There are only a limited number of students and teachers at AISG which limits the number of customers that the café has access to. But the lack of customers has never been an issue for the café.

 Many students at AISG spend their lunch time at the café with their friend. The lack of competition allows the café to receive a larger number of customers.

“With no doubt, a cafe at the center of the city has more potential customers, but on the other hand, our cafe faces lower rental fees and in addition to that, the general volume of things supplied to us is lower than any other restaurant you can find in Guangzhou.” Analyzed the 11th grader. 

 Fewer students don’t offer the café with the excuse of raising their prices. The lack of competition and restrictions offer the café the chance of monopolizing the AISG snack market. 

 The price comparison becomes clear when comparing AISG’s café prices to prices of food and beverages of cafes throughout Guangzhou. 

 Just simply comparing the prices of lattes of AISG’s café to a commercial café in Guangzhou, the overpriced nature of the AISG’s café is blatantly revealed. While the latte price at AISG is 22 rmb, the latte price of Luckin’ Coffee is only 16 rmb. In addition to that, Luckin’ Coffee must face the possibilities of having no customers, high rental fees, and expensive electricity and water bills.  

 AISG administration should step in to prevent the café’s vicious plan on monopolizing the AISG food industry. It seems that the school doesn’t want to make compromises towards negotiating with Aden on their food prices, but rather thinks that students should work together to bring the prices down. 

 “So supply and demand if, if 100% of the students were purchasing food all the time for lunch.” Explained Mr. Lefebve. “The price would actually go down because their volume sales.” 

 Although the idea of free market capitalism is great, the lack of competitors allows the café to freely increase their price and monopolize. The overpriced nature of AISG’s café can be depicted from various perspectives and if the administrators don’t act accordingly, the prices will continue to surge.