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Home Coffee News

What makes up the price of a cup of coffee?

by Staff Writer
November 18, 2024
in Business advice, Coffee News, Skills and education
Reading Time: 3 mins read
A A
Coffee Supreme

Image: Coffee Supreme

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Coffee Supreme Marketing Manager Ash Pearce on how a silver-coin investment per cup could serve as a lifeline for local cafés.

Consumers might have noticed a small increase in the cost of the coffee at their local lately – an extra 20 to 50 cents per cup, perhaps.

It’s natural to wonder why, but there’s a compelling reason behind it, and it’s not just about rising prices. That extra bit goes a long way towards sustaining the quality coffee and supporting the local cafés that are the backbone of our communities.

Great coffee doesn’t just grow on trees. It represents the hard work of farmers navigating unpredictable climates, from droughts to rising costs. But that’s just the beginning. There’s the journey each bean makes – through shipping, logistics, roasting, and, finally, brewing – all while navigating inflation and increasing expenses at every step.

Then, there are the cafés. These local hubs open their doors at the crack of dawn, ready to welcome customers in for a morning coffee. They’re facing a tough reality, too: either increase prices or risk compromising on quality. But for many, letting standards slip isn’t an option.

That small 20 to 50 cent increase in each cup is more than just a price hike. It’s a lifeline that helps keep quality intact and cafés afloat.

What makes up the price of a cup of coffee?

Every dollar spent on coffee does more than just cover ingredients – it keeps local cafés running and helps sustain the quality expected. From wages to rent and supplies, each part of the cup’s price plays a role in keeping the café doors open and ensuring a fair return that supports their ability to serve the coffee customers love. Here’s how it approximately breaks down:

  • Wages: $1.50 supports the baristas, the early risers who make the coffee.
  • Rent and utilities: $1.50 keeps the lights on and the space welcoming.
  • Ingredients: $1.00 covers the coffee and the milk – the essentials of the drink.
  • Equipment: $0.50 goes to maintaining the machinery behind each pour.
  • Profit: $0.50 remains, allowing cafes to stay afloat and invest in quality.

    Image: Coffee Supreme

This balance means coffee shops can keep bringing the quality consumers come to expect without sacrificing what makes each cup special.

Every cent of that extra 20 to 50 cents helps sustain a broader ecosystem – from the farmer’s field to the café counter, from the local job market to the support of a lively community space. Cafés are more than just places to grab coffee; they’re the heart of our neighbourhoods, where people connect, relax, and take a moment for themselves.

So, next time a customer asks about the price of a cup of coffee, know that it’s about more than just the beans. They’re contributing to a community’s well-being, supporting a small business, and helping keep a standard of quality that turns a cup of coffee into something truly special.

For more information, click here.

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