Major coffee chains Caffe Nero and Costa are facing backlash as customers react to recent price increases. Caffe Nero, which operates 2,600 locations nationwide, has introduced a 30p surcharge at railway stations and train platforms, leading some patrons to abandon the chain.
At Caffe Nero’s Piccadilly branch in Manchester, the price of a large latte has risen from £3.80 to £3.90, following a 50p increase from the previous year. Cappuccinos have also seen a rise, now costing £3.90 compared to £3.30 in 2022. Meanwhile, Costa has raised the prices of a large latte and cappuccino to £4.30, up from £4.15, and a large Americano to £3.65, up from £3.35. The cost of a flat white has increased to £3.85 from £3.30 over the same period.
Consumer advocates have criticized these price hikes. Martyn James, an independent consumer advocate, remarked to the Sun newspaper, “When coffee prices approach those of a pint, it signals that major brands are pricing themselves out of reach. Many consumers have found that the cost of a daily coffee has surpassed what they can afford.”
Susannah Streeter of Hargreaves Lansdown noted that despite a decrease in overall food inflation to 3.7% as of March, prices remain high. She highlighted that global commodity prices, particularly for cocoa, have surged, contributing to increased costs for coffee products. “Coffee chains are promptly passing these rising costs onto consumers. While spending on major items has decreased, commuters and casual spenders are still willing to pay more for their coffee indulgences,” she explained.
Both Caffe Nero and Costa declined to comment when approached by the Sun.