A cup of coffee… Australia is the cheapest in the world!

ABC online news recently wrote an article about how Australia is under-selling the cost of speciality coffee. On average, Australia is the cheapest cup in the world with Singapore, Dubai, Athens and Basel being the most expensive in the world.

Over the past decade, coffee prices have not kept pace with inflation. Maybe in an effort to retain customer loyalty, many cafes are doing themselves an injustice by not raising coffee cup prices and in turn are hurting the speciality coffee industry.

Over the past two years the cost of milk has risen by 20%. Electricity has also had a significant price increase. Add on staff wage increases and the cost of running and updating equipment and you soon realise there is not a lot of profit margin in speciality coffee.

Despite the low margins, this hasn’t stopped us wanting to provide the best quality speciality coffee to our customers. We’ve spent years developing relationships with coffee importers and farmers and are invested in the long-term success and sustainability of speciality coffee.

We believe customers do want more than a transaction. They are looking to connect with the products they buy and this includes the coffee they drink. If customers have a better understanding of what it takes to get the coffee from farm to cup and what the costs are to run a cafe, they’ll be more likely to support a cup price rise. It comes down to open communication with customers, sharing your stories and enouraging an appreciation of speciality coffee.

Link to the full ABC article here