Fact: a cup of coffee has never been this expensive
Prices in the hospitality industry are skyrocketing, and a cup of coffee on a terrace or in a café has never been this expensive. What’s more, prices have never risen this quickly. Trade magazine Misset Horeca conducted a survey among a thousand hospitality entrepreneurs. The result: you now pay seven percent more for your cappuccino than you did six months ago.
Normally, prices in the hospitality industry rise as well. Inflation, naturally. On average, a cup of coffee becomes 1 to 4 percent more expensive each year, according to Misset Horeca. But their survey shows that an average espresso or cappuccino has become 5 to 7 percent more expensive over the past six months. The reasons for the price increase are clear: high gas prices and failed coffee harvests. As a result, coffee suppliers are charging hospitality businesses more for a kilo of coffee beans, and those businesses are passing these price increases on to the prices on the menu.
Price increase at supplier
A cappuccino has become 7 percent more expensive on average, Misset calculated. You pay 5 percent more for an espresso, while an ordinary cup of coffee costs 15 cents more, an increase of 6 percent. Most entrepreneurs, over 70 percent, said that their coffee supplier had raised prices in recent months, and that further price increases are on the way.
Financial cushion
In any case, prices in the hospitality industry are rising quickly. Entrepreneurs no longer have enough financial cushion to absorb price increases through their margins. In addition, they still have to make up for the losses caused by closures during the coronavirus measures, while deferred tax returns and repayments of subsidy schemes may still be looming.
Coffee beans
The price of coffee beans has risen for various reasons. Due to poor weather conditions in Brazil and Colombia, harvests are smaller than usual or have even failed. The harvest period on coffee plantations in South America coincided exactly with strict coronavirus rules, meaning seasonal workers could not travel to the plantations. Add to that the fact that freight transport has become considerably more expensive due to rising oil prices, and you know what that means: it’s going to cost money.
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Source: Misset Horeca
