The shocking cost of a cup of coffee in Australia

What is the average price of a cup of coffee in Australia? We asked 30 Cafes and found the cost of these sizes to be the following:

• 8oz - $4.19
•12oz - $4.90
•16oz - $5.68

We personally have a few Cafes that offer an XL coffee size (20oz) which we like to call a ‘bucket’. We offer this for $7.

Add-ons are a great way to earn a little extra. The average cost of an extra shot is $0.64 and alternative milk (such as oat milk) is $0.65.

How much do you charge in your Cafe? Have you realised that you are undercharging?
If you are, how can you increase prices without losing customers? Find 3 tips below.

1) Small, regular increases add up. If you increase your prices by 10% say at the end of a financial year+ the end of a year you could make an extra 20% a year.

A 10% increase of a small $4 coffee is 5c. Most regular customers would not notice a $13 increase in a year, yet a cafe with say 50 customers a day could make an extra $237,000 yearly.

2) Signage explaining the reason for the increase (such as an increase in the price of green beans or a desire to maintain a high level of quality) combined with plenty of notice & praise for their understanding tends to work well.

3) Changing menu items. Changing menu items from avo toast for example to a truffle avo special (same things + a dusting of truffle) along with a price increase can help disguise it. Particularly if you have seasonal menus.