Starting with Formosa Chang: Taiwan Should Seek More Than Low Prices—Prices and Wages Need to Grow Together

A word about Formosa Chang: the most common comments I see online are “expensive” and “raising prices.” First, “expensive.” A set meal at Formosa Chang costs roughly NT$120–150. Even if you call that expensive, it is still less than many Japanese ramen or pasta dishes. Yet many people in Taiwan seem to have a psychological barrier to paying more than NT$100 for a braised pork rice set. If Japanese ramen can sell for over NT$180, why is a Taiwanese braised pork rice set not worth NT$120? Next, price increases. Formosa Chang frequently changes its menu, with some price adjustment each time. Many people in Taiwan immediately push back when a local business adjusts prices, yet those same people hope every day for a pay raise. There is a paradox here: we want our wages to rise but do not want businesses to reflect that in their prices. To me, the ideal is for Taiwanese braised pork rice and pork chop rice prices to adjust with the general price level, while people’s wages grow too. A vibrant economy needs to keep growing rather than be held down. Returning to the price increase, the question is whether Formosa Chang is reasonably adjusting meal prices to reflect, in part, ingredients and, in part, employee pay and benefits. I think people in Taiwan need to move beyond a value system centered on cheapness and low prices. Constantly trying to suppress prices also suppresses wages, which feeds a vicious cycle of further pressure on prices. We should encourage Taiwanese businesses to make good products, seek reasonable prices and profits, and use those profits to treat employees better. Taiwanese consumers should also recognize that buying a good product matters more than buying something cheap and poor in quality. Together, we can create a virtuous cycle.