Australians may soon face a steep rise in their morning coffee costs. Experts in the coffee industry are warning that the price of a cup could see significant increases in the coming months. Supply chain challenges, including rising costs for beans, labor, energy, and rent, are placing increasing pressure on businesses.
Wes Lambert, CEO of the Australian Restaurant and Cafe Association, has predicted that coffee prices in urban centers—especially at CBD locations and airports—could hit $10 per cup by the end of the year. The price hike is attributed to rising costs for raw materials, wages, power, rent, and taxes.
While suppliers and industry leaders agree on price increases, there is debate about how steep the hikes will be. Regional areas, such as Longreach in Queensland, are also feeling the impact, with small cafes like Kynda Cafe seeing costs rise despite being far from metropolitan areas.
Courtney Blyth, a barista at a local cafe, explained the challenges. Her café has raised prices gradually due to an $8 increase in the cost of beans every six months. “It’s a tough decision, but it’s necessary to keep the business going,” she said.
Flat Whites Could Soon Cost Over $4
Tim Adams, an award-winning barista and business owner, believes that the days of the $4 flat white are over. At his Sunshine Coast cafes, prices have already increased due to rising overhead costs. Adams predicts that the cost of a standard coffee could reach $8 or $9 soon.
Abdullah Ramay, the head of Pablo & Rusty’s Coffee Roasters, also expects price hikes. He suggests that $5.50 could be the new minimum for a small flat white, with prices possibly rising to $7 by the end of the year. He notes that internationally, coffee prices range from $8 to $9, and the industry will need to find a balance between fair pricing and customer expectations.
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