Have you been to your local cafe recently, ordered your daily coffee and thought to yourself... is that what I usually pay? There's a good chance it's not and to be sure you don't make anyone feel bad about that, we're here to help you understand why.
There are a number of reasons that you will see the price of your daily coffee go up and it's great to know what they are, so you can be respectful of the cafes decisions to put their prices up. They don't want to it, but it is what they have to do to keep the doors open.
Some of the challenges the coffee industry is facing is around the supply chains, the increasing costs of green beans, international shipping and local freight charges with additional supply & demand issues.
"Nearly all contracts for coffee delivery are benchmarked against the C price, with the result that prices for green Arabica (unroasted beans) have risen by over 80% during the past year." The Conversation writes in this article about the rising costs of coffee.
A frost in Brazil is a major factor in the supply and demand issues, coffee is a traded stock and is based around the brazil coffee price, so if they are hurting, so will the global coffee market.
The media has begun talking about these price rises and the public is becoming more aware. Recent newspaper articles have claimed that a standard coffee could cost $7 in the not too distant future. Sure, if you order a 16oz coffee you could reach this cost, but at this stage, we're not seeing small coffee's reach $7 just yet. Cafe's are making reasonable increases like 20c or 50c to recover their profits from rising supply costs.
Coffee roasters are a part of the global supply chain and as our costs rise, we're forced to pass these onto our cafe partners who then need to pass this onto you, the customer. This is not a profit grab, this is just price of doing business.
So next time you buy a coffee and you pay more for it, have some empathy for the staff member serving you, and the business owner trying to keep the doors open. Don't make a nasty comment. Don't change to a worse coffee to save a few bucks. Support the cafes that have always served you well and do your part for what is a world-wide issue.
Need Help in Your Cafe?
Are you a cafe owner looking for more advice on your pricing? or are you interested in working with us to improve profitability & productivity in your cafe? Reach out to us through our Wholesale Coffee Information Page, we'd be happy to help.
Thanks,
Luke Floyd
Artisti owner & head roaster.
