UK Coffee Shop Owners Think £5 Could Be The New Norm For A Simple Cup Of Coffee – CoffeeTalk

Coffee shop owners are concerned that paying £5 for a standard cup of coffee could soon become the norm, as an organization that analyses the sector suggests it could be a reality within two to three years. Nicola Lockwood, owner of Bells Tea Shop in Lincoln, believes that the price of coffee could be too high and that it would not go down well with her customers. In Hull, Karen Wattam, owner of Garden Village Tearoom, thinks that if the price does reach that, she would lose a lot of business.

Jeffrey Young, CEO and founder of Allegra World Coffee Portal, says the £5 cup of coffee is already the case in some shops. Larger drinks with add-ons, such as syrups and non-dairy milk, often bring the price to £5 already. The price of coffee on international commodity markets hit its highest level on record in December 2024, with the price for arabica beans, which account for most global production, jumped more than 80% in the year. The cost of robusta beans hit a fresh high in September.

Coffee traders said they expected crops to shrink after the world’s two largest producers, Brazil and Vietnam, were hit by bad weather. Paul Rooke, executive director of the British Coffee Association, says weather-related issues have had an impact on prices, but that the beans are only part of the equation, with increasing energy, labour, and business costs for cafe owners also pushing up prices. While higher prices will not be welcomed by consumers, Mr. Rooke believes it is good news for producers, who could get a bigger return for their produce.

Nicola, whose tearoom is nestled in the heart of the city’s Bailgate area and attracts a lot of tourists, charges less than £3 for an Americano coffee but admits she may have to increase her prices. Coffee prices and chocolate bean prices are going through the roof at the minute, and she is getting messages from her suppliers saying that the prices are going up significantly.

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