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Coffee_CupThe price of coffee is only going in one direction much like everything else in the world at the moment. Back in March the independent newspaper reported that Pret had put its prices up by 11p per cup.

A small cappuccino at Pret now costs £2.10, up this week from £1.99. Costa Coffee charges 5p more at £2.15, while one at Starbucks costs £2.35. Although the raw coffee costs have gone up they are not the real cause of the price rises in our cups, the milk is the real cause, it makes up approx 8% of the total cost of each cup. Milk costs have been rising and that has a knock on effect on the cup price.

As an independent coffee shop you can’t afford to soak any raw material price rises you have to pass them on because if not these will have a direct impact on your profit. Its important to keep a check on the prices of raw materials and act fast when they rise.

The cost that has real impact on the price of coffee is staff wages, with many independent coffee shops operating either at or close to the minimum wage any changes have maximum impact. The minmum wage is to rise in October this year by 12p (21 & over), for most this will need to be passed onto the customer.

Of course as independents we are already selling high quality coffee which typically costs more than our high street competitors and the £3 cup of coffee is just around the corner.