Australian coffee prices still lag far behind Europe, expert warns
Coffee Supreme CEO Andrew Low says Australian specialty coffee costs far less than the $9-$10 charged in Europe and the US.
After the October 1 surcharge ban forced cafes to raise prices about 50 cents per cup, a leading supplier of specialty beans says Australian coffee is still cheap. Andrew Low runs Coffee Supreme, which supplies beans to dozens of cafes across Australia, New Zealand and Japan.
Low says specialty coffee in Europe and the US costs $9 to $10 per cup. Australian cafes charge far less.
Cafes are under pressure from rising wages, ingredient costs and egg prices that spiked because of bird flu. Many used coffee as a loss leader to bring in customers, but shrinking food profits mean they cannot absorb the cost.
Low argues cafes can charge more because Australian specialty coffee is among the world's best. He says cafes should raise prices slowly and regularly, not in big jumps.
- $9 to $10 per cup
- Europe and US price
- About 50 cents per cup
- Typical increase
- 300 percent from bird flu
- Egg price spike
- October 1
- Surcharge ban date
Why it mattersUnderstanding why your coffee is rising helps explain the gap between Australian and overseas pricing, and signals more increases may be coming.
AustraliaAustralian cafe customers may see coffee prices climb further as businesses adjust to rising costs and realise they are undercharging compared to overseas markets.
✓ Claims checked against the source. checked 2 h ago
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