Posted by luke floyd

Have you been to your local cafe, ordered your usual coffee and thought to yourself, is that what I usually pay? You're not losing your mind, the coffee industry is.

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. Check out this article explaining why the price of green coffee is going up so much.

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. Read more about how the frosts in Brazil are impacting the cost of coffee.

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. Yes, that’s correct, a single small dine in coffee or 8oz Takeaway could be $7 to ensure cafes can maintain a profitable cup. Read more about why your coffee could cost $7 soon.

As a coffee roaster, we have been limited in the length of our contracts as our suppliers can't guarantee their prices won't increase past 3 months, previously coffee contracts were 12 months allowing for great future price stability. This means we're having to forecast and plan for the future without knowing what increases lie ahead. We've already seen price rises up to 60% on some origins and we expect to see more on all future coffee purchases. We are a part of the supply chain and as our costs rise, we're forced to pass these onto our Cafe Partners who then need to pass their this onto you, the customer.

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?

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.

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