The amazing price hike for coffee: Australians warned the price of their morning mug could rise by $1 to pay for the sharp rise in import costs
- The price of a cup of coffee could soon rise by as much as $1 due to Covid
- The increase is due to skyrocketing freight and shipping costs for imported coffee beans
- Those who can’t live without daily caffeine get up to $360 a year out of pocket
Coffee aficionados could soon spend more for their daily caffeine hit.
Prices are expected to rise by as much as $1 a cup as cafes try to recover from the Covid-19 pandemic.
The price increase is due to a sharp rise in freight and shipping costs, with cafes in urban areas expected to be the hardest hit.
The Cafe Owners and Baristas Association of Australia has warned coffee aficionados to “absolutely” expect a 50 cent increase to a maximum of $1.
Australians could soon pay up to $1 more for their daily cup of coffee. Pictured is a barista in a Melbourne cafe
“When things open up again, I think we’ll see,” spokesman Sean Edwards told NCA NewsWire.
He estimates that the pandemic and ensuing lockdowns have forced up to 25 percent of cafes to close.
“That’ll even things out a bit so that competition, especially in the inner city, probably won’t be as high…so you’ll probably see $1 a cup rise,” said Mr. Edwards.
Australians who can’t live without their daily caffeine drink have up to $360 less a year.
This is due to the skyrocketing cost of importing coffee beans, as freight rates have nearly doubled in the past year.
The proposed price hike is due to skyrocketing freight and shipping costs of imported coffee beans during the pandemic. Pictured, cafe visitors after the recent end of the lockdowns in Sydney
Bean production in Brazil has also suffered from severe drought.
Some cafes have already raised costs, including Bread Social in northern NSW, where prices are up five percent for the first time in five years.
“We need to make some quick and drastic changes to make sure we don’t go backwards ourselves,” director Sam Saulwick told ABC.
“I think you’re going to see that across the board.
“I just don’t think people can bear those ongoing costs in the long run without passing them on.”
Some cafes have already raised the cost. Pictured is a cafe in Byron Bay in far north NSW