Dear coffee lovers,
Specialty coffee prices will continue to get adjusted periodically as we navigate unprecedented challenges. We are thankful for your support which is essential to the survival of our uniquely Australian coffee culture. We hope that you continue to support us and our industry; your continued support means the world to us.
There are a number of factors as to why coffee prices are increasing. The most important information can be seen below:
- Green coffee (raw coffee before it’s roasted) prices have increased significantly over the last 18 months in some cases
- The Australian dollar has depreciated 15-20% in the last 12 months (coffee is traded in US dollars)
- Milk prices have increased by 20%+ in the last 18 months (the industry needs this for their survival)
- All other inputs have risen by 5-15% and electricity by 20-25%
- The average price of a small flat white (before any customisations) is around $4-$5 USD ( $6 to $8)
- Specialty coffee uses some of the best coffee available in the world, it’s selected and roasted by some of the best roasters in the world, and is brewed by trained professionals (Baristas) on specialised (and expensive) equipment. Every beverage is made to order. Cafes are not charging enough to continue to provide this specialty experience.
- Coffee prices in Australia are too low in comparison to other countries as well as to other beverages (Bubble tea, Juice, Smoothies etc.) while the quality and service cafes offer are superior.
The choice to make
Cafes have a choice to make. Either they need to drop the level of their quality and service or they need to adjust their prices to at least recover some of the cost impacts.
Let’s talk dollars and cents
We believe that a specialty coffee small flat white (before customisations such as extra shots, alternate milk, etc.) should be no lower than $4.50 anywhere in Australia. It should be higher in some places to account for higher rents and other factors. If you are interested in the breakdown of costs for a coffee, please read this article.
In the next 6 months, the price of a small coffee (without customisations) will likely need to be around $5 or more for the industry to continue to be viable.
What is specialty coffee?
Specialty coffee is some of the highest quality coffee in the world (technically defined as coffee that is assessed as above 80 points in cupping score). Specialty coffee is also focused on transparency, sustainability and fair pay for the farmers and producers. Australia is blessed with specialty coffee being accessible in most places.
What is a specialty cafe?
The start is to use specialty coffee and specialty coffee equipment (espresso machine and the like). However, that is not enough. Specialty cafes use premium ingredients, create exciting food and beverages, provide a memorable ambience, and with a level of service fitting the quality of products they offer. They are transparent and often sustainably focused.
We know the prices of everything are going up and coffee is near and dear to all of us. It’s where wonderful memories are made. We can’t thank you all enough for your support and love through this period. The unique Australian coffee culture cannot exist without it.