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Thread: Whats in a $3 cup of coffee?

  1. #1
    Senior Member flynnaus's Avatar
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    Whats in a $3 cup of coffee?

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Apparently this is where your $3 goes. Considering the cafes I frequent charge $3.50 - $4 a cup (drink in), would they be charging for "professional" baristi? </rhetorical>

    Whats in a $3 cup of coffee

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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 22283D2A2A253137440 link=1300741388/0#0 date=1300741388
    Considering the cafes I frequent charge $3.50 - $4 a cup
    I cant get a cup of coffee for less than $4 here now. My partner drinks soy, and some places charge up to $1 extra. She recently paid $5.20 for a standard soy takeaway cappuccino...

    If coffee ends up being over $5 a cup (likely) then I wonder if people will still keep paying that every morning, when places like Maccas are trying to keep whole meals below that due to people being tight.

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    JJJ
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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 3E21233920352223344C0 link=1300741388/1#1 date=1300741702
    I cant get a cup of coffee for less than $4 here now.
    Really? I frequent many of Melbournes highest regarded cafes regularly and ive only once paid more than $3.50 for a standard coffee and thats at Market Lane, where they charge $3.70 entirely because they use very expensive un-homogenised milk.

    As for potential price rises, i dont have a problem paying an extra 20-30 cents a cup even though i dont necessarily believe the industry figures who are actively and methodically using the media to condition us for the price rise by subtly suggesting they no longer make a profit out of coffee.

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    Re: Whats in a $3 cup of coffee?

    Glossy over simplified graphic now where is the power, building costs, rates and various taxes that keep going up too. Another case of typical media beatup and hype.

    I also believe Sydney coffee pricing is/has been artificially low compared to the rest of Australia. Melbourne pricing has been $3.30-$3.50 for ages. The last $3 cup I had was over a year ago at Veneziano Abbortsford. I did walk past some signs in Melbourne offering sub $3 coffees last month but I saw that as a sign to keep walking* ;)

    If you take good milk at around $2 per litre (non-homogenised more again) against say Bonsoy at around $4 ($4.50 here with freight) then asking for $0.30-$0.50 extra is not unreasonable if you only have a small turnover. The gig I did last week to keep it simple I didnt charge extra for the Bonsoy but I think that will need to change for me too.

    Factoring in 20-30% Bean price rises across the board is only a $0.10-15 cent per cup cost increase when using double bases.

  5. #5
    Sleep is overrated Thundergod's Avatar
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    Re: Whats in a $3 cup of coffee?

    The solution is in the article:

    "head to Buenos Aires or Johannesburg for a cheaper cup, where it is about $2.20."

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    Re: Whats in a $3 cup of coffee?

    Buenos Aires or Johannesburg is a long way to go for a cheap cuppa.

    Research by Gilkatho, a CS sponsor, shows that of our Capital Cities, Perth had the most expensive take away coffee ($3.70)
    followed by
    Canberra ($3.37),
    Brisbane ($3.33),
    Adelaide ($3.30),
    Melbourne ($3.15),
    and Sydney ($3.11).

    Look at:
    http://www.coffee-prices.com/2011-release-2010-q4.html

    and

    http://www.hospitalitymagazine.com.au/article/Sydney-offers-cheapest-coffee-as-price-pressure-builds/528509.aspx

    Barry

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    Re: Whats in a $3 cup of coffee?

    And then every 7-Eleven sells a coffee for $1. I went into the Crows Nest store (Sydney) and it was instant coffee with non-dairy whitener, so not drinkable. The store manager told me there was no point competing with the cafes in the area so the machine was mainly for display - and to keep the prices down.

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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 0C0C0C460 link=1300741388/2#2 date=1300744060
    Really? I frequent many of Melbournes highest regarded cafes regularly and ive only once paid more than $3.50 for a standard coffee and thats at Market Lane, where they charge $3.70 entirely because they use very expensive un-homogenised milk.
    Yep, I got a long black takeaway from a place that was $3.50 last time I went there...and was shocked that it had gone up to $4.

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    Re: Whats in a $3 cup of coffee?

    Up until recently we were charging $3 a cup of coffee, that being the cheapest coffee we sell with milk. You could get an espresso for $2.

    Recently our prices were put up and a cup is now 3.30. A mug is 3.60 and our small t/a (a 12oz) is 3.90. Our large (16oz) is 4.40.

    Interestingly, after our recent price rise, Ive not heard one customer complain. I guess people are just getting used to seeing price rises these days. Though we do hear more people coming back and telling us how much they are paying for things elsewhere and usually that is a lot more!

    Considering how much people are prepared to pay for say a 600ml Coke or even a drink out at the pub or club, I dont really think that too many people are going to stop buying coffee if it goes over $5.

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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 0A362B303A3B2C39313A5E0 link=1300741388/4#4 date=1300748408
    The solution is in the article:
    "head to Buenos Aires or Johannesburg for a cheaper cup, where it is about $2.20."
    Im not sure where they got that line, possibly an anecdotal story from a person recently returned.

    Barryd thanks for the linking. Ive now got a database of over 20,000 data points collected over the past 8 years. The data shows that the retail price of a cup reflects much more than just the raw bean price. I usually try and explain to the media that consumers will pay whatever is reasonable when they are happy that receive what they consider for a great coffee. As you know every consumer is different.

    Interesting on the 711 prices. They too would have a market for their coffee at $1 to the right market.

    What will happen to prices over the next few months, well have to wait and see.

    All the best.

    Wayne

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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 20303C3C27320C34323F530 link=1300741388/8#8 date=1300864967
    A mug is 3.60 and our small t/a (a 12oz) is 3.90. Our large (16oz) is 4.40.
    Sounds ok. I just hate going to a place where they charge $4 for a regular t/a cappuccino (12oz), $1 extra for soy (which annoys me greatly, as any cafe charging $4 should be using regular milk that is the same price as soy anyway), yet you pay the same for a long black.

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    Re: Whats in a $3 cup of coffee?

    I think the price also depends on how much competition you have around you.....this can lower the price.

    rent being charged for premises....this can make business owners drive the price higher.etc etc etc.( especially those located in major shopping centres)

    there are a few different factors involved when it comes to price.

    $4 for a standard 12 oz .....not that bad ive seen worse.

    Ive seen a place that charges 4.50 for 8oz....now thats steep, and the coffee wasnt anything to write home about.

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    Senior Member trentski's Avatar
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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 605C415A505146535B50340 link=1300741388/4#4 date=1300748408
    "head to Buenos Aires or Johannesburg for a cheaper cup, where it is about $2.20."
    I was in the Buenos Aires Airport about 15 years ago and one of the guys I was with bought a coffee. It was US$4 at a time when that was NZ$8 :o

    They had a cafe in the airport called "The Pink Box" and another one called "Flaps" :-?

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    Re: Whats in a $3 cup of coffee?

    Or perhaps it is just a good piece of price signaling if all the suppliers put up their prices for the same reason at around the same time then the consumers can pay or manage without.

    on another note

    "But David Moeliker, the owner of Outpost Espresso in Collaroy, said efficient baristas were hard to come by."

    is this a statement that people dont seem to train staff any more they just seem to expect them to walk off the street and be expert.

    Am I too old school in thinking if you want really good staff usually you are going to have to at least do a little training yourself.


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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 7E757445747B7368741A0 link=1300741388/13#13 date=1301113577
    is this a statement that people dont seem to train staff any more they just seem to expect them to walk off the street and be expert.
    It does seem that the quality of the training provided by many businesses is deteriorating.
    At one place where I used to work, everyone was trained to dose by pulling the lever twice.
    Tamping involved smashing the side of the PF with the tamper.



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    Re: Whats in a $3 cup of coffee?

    Quote Originally Posted by 7C776F6579787A737961160 link=1300741388/14#14 date=1301206448
    It does seem that the quality of the training provided by many businesses is deteriorating.
    At one place where I used to work, everyone was trained to dose by pulling the lever twice.
    Tamping involved smashing the side of the PF with the tamper.
    I agree and there certainly are alot of differing opinions and takes on whats right and whats wrong...

    Example I have had a coffee company tell me once you dont need to purge the group heads of old grounds before the next shot.....what did they think was going into the next shot?

    And a trial I went for once where the manager said that cleaning out the portafilter basket before putting the coffee in it was a waste of time.......and that all these extra processes,purging steam wand etc. was basically wasting time if I was to do that.... :-? I lost interest in the prospect of working there.


  17. #17
    Senior Member Rocky's Avatar
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    Re: Whats in a $3 cup of coffee?

    Up here in the sticks I have never had a $3. cup of coffee. The standard price for basic styles in std sizes is $4. to $4.50. If you want soy or a bigger size then you can pay up to $6.
    There are a couple of places that serve good coffee and the rest serve rubbish - most customers dont know or care because there is so much milk and sugar in their coffees.
    Ill pay $4.50 with a smile on my face as long as the coffee is good.

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    Re: Whats in a $3 cup of coffee?

    Behmor Brazen - $249 - Free Freight
    Quote Originally Posted by 2D2024212C2B2232203631450 link=1300741388/6#6 date=1300754839
    And then every 7-Eleven sells a coffee for $1. I went into the Crows Nest store (Sydney) and it was instant coffee with non-dairy whitener, so not drinkable. The store manager told me there was no point competing with the cafes in the area so the machine was mainly for display - and to keep the prices down.
    Then of course, theres the small matter of being able to keep that coffee down... ;)



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