Australians Reveal How Much They’re Willing To Pay For Coffee While The Cost Of A Cup Skyrockets – CoffeeTalk
Caffeine addicts in Australia are facing a potential price hike due to rising costs of coffee beans and wages. Experts have revealed that businesses have been taking a financial hit by not upping prices in line with mounting pressures on the industry, including drought conditions in Brazil driving up the cost of coffee beans. Consumers are willing to pay more for quality brews, but some are still willing to fork out for a higher price.
Australian Restaurant and Cafe Association chief executive Wes Lambert has warned that the cost could skyrocket as drought conditions in Brazil drive up the cost of coffee beans. The cost of wages, rent, cups, lids, and sugar has also put pressure on hospitality businesses. Lambert says that many hospitality businesses are closing this fiscal year due to the pressure from cafe owners who have been losing money on coffee or breaking even for too long.
Consumers are also struggling as cost-of-living pressures mount. He believes that if people are willing to pay $12-15 for a pint of beer, coffee prices must also increase. This may be the reset the cafe industry needs.
Coffee at Pina in Potts Point, Sydney, is still about $5.50 per cup, but owner Andrew Hardjasudarma believes cafes should be charging $8 per cup based on rising costs. However, he expects coffee prices to shoot up to $8 over the next few months. Unfortunately, Australia is not so ready for that one.
Cafe de la Fontaine in Sydney’s east will only set consumers back $4, with owner Stephanie Onisforou confirming she had no plans to raise the price. She wants to keep coffee prices low as a token of appreciation to her loyal customers, some of whom purchase multiple coffees a day from her shop. However, she is certainly expecting a rise in the cost of her coffee beans.
Onisforou says her business is not completely reliant on coffee sales, so she has combated a recent increase by instead upping the price of other food menu items. She intends to keep the price at $4 for as long as possible.
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Source: Coffee Talk