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Wednesday, February 08, 2006
Capillas: Dunkin' Donuts and expanded VAT
By Stephen Capillas
The Lowdown
IS IT just me or are the donuts in Dunkin' Donuts suffered a similar fate to the beloved pandesal and had become smaller? A recent visit to the Divisoria branch of the fastfood outlet somehow confirmed my observations.
When I ordered some Bavarian donuts the attendant gave me this small confectioner sugar coated stuff that was hardly any bigger than a 10-year-old child's fist. In fact it was no bigger the donuts being sold outside the City Central School on a given school day.
At least in that school the donuts are much cheaper though sosy and pa-rich types would find the donuts not up to their standards.
This shrinking Dunkin' Donuts' phenomenon is also apparent in other outlets in Cagayan de Oro, and may have also occurred in other parts of the country.
Though Dunkin' Donuts management had yet to issue an official statement on this though it doesn't take a rocket scientist to know that the likely culprit for this shrinking donut phenomenon may be none other the Reform or Expanded Value Added Tax (VAT).
A contingent led by Finance Secretary Gary Teves visited Cagayan de Oro recently and while one can hardly find the patience and understanding to swallow hook, line and sinker the government line of reasoning for the tax increase the public has no choice but to grin and bear it gracefully no thanks to our honorable representatives in Congress who were marshaled by the Palace to foist this new monkey on our backs.
And as a result everyone is affected--from the gasoline stations, department stores, and now fastfood outlets. It wasn't too long ago that Jollibee and KFC admitted to increasing the prices on rice and other additional food items in their menu because of expanded VAT.
Thus it was only a matter of time before Dunkin' Donuts would follow suit and cut costs by shrinking their donuts while charging them at the same price. So the costumers may complain but eventually they'll come back, gobbling the smaller donuts with less gusto but with an acceptance of the hard facts of economic reality.
At least they didn't stiff the customers on the donut's cream filling. Or else one can always dine al fresco on fishballs and turon (fried banana roll).
(February 8, 2006 issue)
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