Rising prices allow consumers to learn more about coffee shop operations

Around the world, headlines are warning consumers that a sharp increase in coffee shop prices is a real possibility. Talks of the AU $10 flat white and “the era of the £5 coffee” are becoming increasingly common, causing some concern among consumers grappling with the cost of living crisis.

These figures have sparked debate across social media and news commentary, often framed as a direct result of coffee becoming more expensive to source. However, this narrative oversimplifies the complex web of operational costs that shape retail prices in the coffee sector.

Although the C price reached record highs earlier this year, linking coffee shop prices directly to green coffee costs tells only part of the story. The reality is far more complex, and unless coffee businesses are willing to discuss the many factors influencing their prices, they risk alienating the very customers they rely on.

I spoke to Samantha Scoles at BRITA UK to learn more.

You may also like our article on how much coffee shops should raise their prices.

It’s not just coffee prices that are rising

Green coffee prices reached their highest recorded levels earlier this year, exceeding US $4/lb. However, while raw material costs are important, they account for only a fraction of a coffee shop’s total expenses. Rent, wages, packaging, energy, and milk have all experienced significant price hikes since 2020, and these increases inevitably impact coffee shop prices.

Despite market realities, recent media coverage often oversimplifies the reasons behind rising prices. In doing so, it risks damaging public perception of coffee businesses.

“As coffee prices rise, customers are becoming more discerning, seeking quality over quantity,” says Samantha Scoles, the sales director at water filtration brand BRITA UK, which caters to coffee shops. “Now more than ever, it’s crucial for coffee shops to avoid cutting corners, especially when it comes to the quality of water used in brewing, as this directly impacts the overall coffee experience.”

In this climate, transparency becomes critical. Coffee shop owners and roasters need to help consumers understand why prices are going up, not as an excuse, but as an effort to preserve quality and sustainability.

“Coffee shops are feeling the pressure to manage rising costs on their own, but as consumers, we need to recognise the importance of supporting independent coffee shops and the broader industry,” Samantha adds. “If we want to ensure its long-term survival, it’s crucial that we stand behind these businesses now more than ever.”

In a recent CNN live report, roaster and coffee content creator Kat Melheim reiterated this sentiment. She believes that many coffee businesses feel torn between their need to raise prices to match the market and their fear of losing business to consumers unwilling to pay more for coffee.

“I’m hearing from roasters that they’re afraid to raise their prices – but the problem is that green coffee prices are at an all-time high,” Kat said in the report. “In order to stay in business and support coffee farmers, they will need to raise their prices.” 

Coffee has long been an undervalued commodity. For many consumers, it’s considered too expensive; however, for farmers, coffee production doesn’t provide a sustainable income.

Research shows that many customers are happy to accept higher costs when they understand where their money is going, especially when they feel they are supporting businesses that offer traceable, sustainable, and community-driven experiences.  

Yet if the narrative focuses only on green coffee costs, which is understandable given coffee’s historic undervaluing, it risks undermining the broader value delivered by skilled baristas, hospitality staff, and independent cafés.

Communicating value and building trust

Price increases are rarely short-term. Various reports note that spikes in the C price take about a year to fully reach consumers, and the impacts can linger for up to four years. As such, businesses must prepare for sustained higher costs in the long term, and consumers deserve clarity on what these costs mean.

Samantha highlights the need for such transparency and adds that by positioning price changes as a path to quality and longevity, operators are more likely to maintain customer loyalty.

“It’s important to have transparency with your customers about why prices are going up,” she says. “Ultimately, it’s a story that everyone in the coffee industry should share, no matter the size of their business.

“In the face of cost-cutting pressures, it’s critical that coffee shop owners avoid taking shortcuts in the short term that could compromise quality,” she adds. “It’s essential to deliver a consistent, exceptional experience each time customers visit to ensure they keep coming back for more.”

Sensationalising price increases or blaming a single cause can backfire. As media narratives continue to explain price increases without providing sufficient context, this could further erode the public’s trust in the coffee sector.

Some headlines have claimed that consumers will soon need to pay “up to AU $12 for a cup of coffee” – an exaggeration that grabs attention but can distort the conversation around real cost drivers.

Still, coffee shop owners must tread carefully. If consumers deem coffee too expensive to justify as a regular purchase, they may opt to drink it at home or switch to more affordable options. Many roasters and coffee shops are already seeing more customers treat café visits as an occasional treat rather than a daily or regular habit.

For operators, this means the pressure is on to make each visit count. It’s not just about pricing strategy; it’s about ensuring that every customer interaction reinforces value and loyalty. This could mean elevating service, improving consistency, or focusing more on community-building efforts that help customers see a café as a space they’re proud to support, even at a higher price point.

Shifting the conversation for consumers

As the conversation about rising coffee shop prices continues, businesses must shift the narrative. The cost of running a café in today’s climate is shaped by everything from energy prices and milk inflation to labour shortages and packaging costs.

In this context, Samantha advises that communicating value isn’t just about explaining or contextualising pricing – it’s also about creating a reason for customers to return. 

‘Offering customers a consistent experience – where they feel like they are getting value and a great product – will be vital in ensuring their loyalty,” she says. “Consumers don’t want to see their favourite local coffee shop close due to price hikes, so giving them a great product and experience will be pivotal in protecting the future of these businesses.” 

Rather than focusing solely on cost, businesses should frame pricing changes as part of their broader mission. This could include investing in quality, supporting producers, paying staff fairly, and contributing to their local community.

“By framing the price increase as a means of sustaining quality and business viability, consumers are more likely to understand and continue supporting their local coffee shops,” Samantha says.

Customers, especially those who drink specialty coffee, are likely to have a baseline understanding of why prices are rising and why higher coffee shop prices are justified. Still, the onus is on coffee shop operators to provide further explanation.

In a landscape where inflation affects nearly every consumer good, coffee shops are far from alone in raising prices. 

But they have a unique advantage: their product connects people. If businesses can share their story honestly, they’re more likely to retain not just their customers, but also their credibility.

Enjoyed this? Then read our article on why roasters and coffee shops need to strategise menu pricing.

Photo credits: BRITA Professional, Batch Baby

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