For many individuals, coffee is an essential part of the morning routine. However, your daily coffee fix may soon come at a steep cost.
Industry experts are warning that skyrocketing bean costs are exerting pressure on cafes across the nation.
“This is happening all around Australia. Every cafe is affected,” stated Wes Lambert, chief executive of the Australian Restaurant and Cafe Association.
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According to Lambert, “Up to 30 percent of businesses will feel heavy pressure from these increases, and we have heard about bean prices rising by as much as 50 percent.”
He noted that the supply chain for cafes and restaurants, including beans, is often impacted by weather conditions.
By the end of the year, a single cup of coffee is predicted to cost between $8 and $12.
Local businesses have no choice but to raise their prices.
“We are not just greedy and trying to make more money,” said Fadi Sahan, owner of Little Gossip Cafe. “We need to increase prices slightly to remain viable.”
It’s not just the price of beans and milk that is increasing.
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Hidden costs such as packaging, wages, rent, and additional expenses also contribute to the price of a quality cup of coffee.
For caffeine enthusiasts who cannot give up their coffee, local service stations can satisfy cravings without breaking the bank.
Currently, 7/11 offers a large coffee for $3, while Coles Express and Ampol have prices starting at $3.50.
However, cafe owners emphasize that with them, you are paying for more than just a drink.
“If you want to enjoy your favorite cafe and your favorite cup of joe, you might have to pay more,” Lambert added.
And this is not the only simple pleasure that will see price increases this year.
Price of Beer Also Set to Increase
The cost of alcohol is projected to soar with the upcoming six-monthly increase to the alcohol excise next month.
Independent brewers are concerned that this tax hike could push them over the edge.
“Many brewers who are just barely surviving may not be able to endure this,” stated Kylie Lethbridge, Chief Executive of the Independent Brewers Association.
“If we continue to lay off staff and close our doors, then the tax revenue will be lost anyway.”
The tax is expected to increase by 2-3 percent, potentially raising the price of a pint at the pub to around $15.
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“They are the ones who are really struggling, and it’s affecting families and communities,” she added.
The Coalition has indicated they are open to considering tax cuts.
“All cost of living measures are on the table and up for review,” Ley stated.
“This is a standard part of taxation law that has been upheld by both sides of government for many years,” said Regional Development Minister Kristy McBain.
The alcohol tax serves as a revenue stream that generates millions of dollars for the government.
If changes were to be made, the question would be what would be cut instead.
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