Adjusting prices: A cafe’s change management guide

Raising prices is hard. But not raising them might be harder.

We’re at a crossroads. Specialty coffee prices are rising fast. Margins are tight. Costs keep climbing. And yet, many cafe owners are still hesitant to adjust their prices. Not because it’s unjustified, but because it’s scary.

Not adjusting prices leads to lower quality and bad customer experiences. And life’s too short for bad coffee. Read if your prices haven’t changed, you should be worried.

So how do you raise your prices without creating panic for your customers, your staff or yourself?

The answer lies in change management.

Let’s break it down.

First, accept the new reality

This is no longer theoretical. It’s our new reality. Coffee prices have jumped by more than $10 per kilogram since early 2024. Milk, rent, energy and wages are all rising. And Australia still has some of the cheapest coffee cup prices in the world. This is not a blip. It’s a permanent shift.

You don’t need to panic. But you do need to act. Step one is acceptance. Pricing based on 2024 economics won’t be successful in 2025. Clarity beats hope.

Action: Set a clear long-term pricing goal. For most cafes, a small flat white should reach at least $5.50 soon, with a pathway to $6.00 if you're delivering an exceptional experience. Of course, we’ll keep sharing updates as the market shifts.

Communicate the “why” early and often

Your customers aren’t unreasonable. They just need to understand. Be honest about what’s happening in coffee: rising production costs, Australia being under global parity, sustainability challenges and the real costs of running a cafe.

Change management starts with clear communication. Staff should be briefed and confident. Customers should see simple signage. A QR code linking to a short explainer (like this one) goes a long way.

Action: Train your team on how to explain the change. Let them tell the story, not just state the new price.

Take small, steady steps

You don’t need to go from $4.50 to $6.00 overnight. Change management works best in stages. Regular, modest increases (for example 25 cents every few months) are far easier for customers to absorb.

Each step prepares the ground for the next. Small moves also give you room to monitor customer feedback and adjust accordingly.

Action: Plan a staged increase roadmap for the next 6 to 12 months.

Prepare your team emotionally, not just operationally

Staff often fear customer backlash even more than owners do. There’s always one regular who’s happy to let their feelings be known. A big part of change management is managing internal anxiety.

Hold a short session with your team. Talk about what’s changing, why it’s necessary and how they can handle tough questions. Link the change to a better and more secure work environment for them. Empower them with language, not just instructions.

Action: Don’t assume your team is fine. Check-in, equip them and give them ownership of the change.

Don’t let fear make decisions for you

Yes, you might lose a few customers.  But you’ll likely gain more respect (and sales). Most coffee lovers will stay. And your business will be more sustainable. Read is busier always better.

Fear often makes us overestimate the risk of change and underestimate the cost of staying stuck. The greatest danger is not doing too much, but doing too little, too late.

Action: Flip the script. Be more afraid of underpricing than of pushback.

Remember, price alone isn’t the full story

Raising prices won’t solve every problem. You still need to deliver excellent coffee, warm service and impeccable hospitality. But pricing right gives you the margin to do those things well.

Action: Use this moment to invest in quality, automation, team culture and customer experience.

Lead with empathy, act with courage

Change is never just technical. It’s emotional. Your customers are feeling the cost-of-living pinch too. So go slow yet steady. Stay kind. But don’t avoid what must be done. 

Also, your customers don’t want bad coffee. So don’t make that decision on their behalf. Our data shows they are willing to pay more for delicious coffee and a great experience once they understand.

This is a chance to lead. Not just in pricing, but in how cafes adapt, evolve and thrive.

Action: Talk to your customers like people, not transactions. Share your story with honesty. Show them you care and take them on the journey with you.

Better pricing builds better cafes

Raising prices is not just about profit. It’s about sustainability. It’s about paying farmers fairly, supporting staff and keeping coffee delicious and hospitable. It’s about delighting customers. It’s about staying in business and staying true to what matters.

It’s not just about coffee

So ultimately, this is not just about coffee. It’s about you. It’s about your team, your family and the farmers. It’s about people. Is your coffee worth an extra $1? Most likely. But are your people worth a little bit extra? Absolutely!

Are your customers worth having a great hospitality experience? Yes! Then, let’s not get paralysed by fear. Let’s act and let’s act fast.

Act Now

Change is uncomfortable. But done well, it creates clarity, trust and resilience.

Let’s not wait for things to go backwards before we move forward.

Start small. Stay honest. Keep going.

And remember, you’re not doing this alone. We’re here to support you every step of the way.

Final word: Act now. If 50 cents is too much, do 25. If 25 is too much do 10. But start making small changes now. Before you finish this article, set a date within the next two weeks to make the first change.

If you’d like to talk to us about how to thrive during these times, we’d love to chat.