One in ten Australian cafes raised prices since surcharge ban took effect
Ten per cent of Australian cafes increased coffee prices by up to 35 cents after the October 1 surcharge ban, though the average rise was only 3 to 4 cents.
One in ten cafes across Australia raised coffee prices following the credit card surcharge ban on October 1, contradicting Prime Minister Anthony Albanese's claim that the ban would make items like coffee cheaper.
Data from the Hey You app and Westpac shows the average latte, flat white or cappuccino rose from $5.02 to $5.05, a tiny 0.7 per cent increase overall. But some cafes moved much further, with ten per cent hiking prices by up to 35 cents.
New South Wales led the adjustments, with 11.5 per cent of cafes raising prices compared to eight per cent in Victoria. Nine in ten cafes did not change their prices.
Hey You CEO Asheesh Chacko said the cafes that did move were responding to pressure from rising milk, bean and wage costs, with the surcharge ban giving them a moment to reset menus. The biggest price jumps happened when cafes rounded up, with 39 per cent of those adjusting raising prices by 50 cents or more.
- 10 per cent
- Cafes that raised prices
- Up to 35 cents
- Largest price increase
- 3 to 4 cents
- Average price rise
- 11.5 per cent
- NSW cafes adjusting
Why it mattersThe surcharge ban was meant to lower prices, but cafes facing margin pressure used it as cover to increase them, raising questions about whether the policy achieved its stated goal.
AustraliaAustralian coffee drinkers saw promises of cheaper coffee unfulfilled, though most paid little extra; the story reflects broader cost-of-living pressures on small hospitality businesses.
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