Cost of living pressures mean Australians have been cutting down on little luxuries like cafe-made coffee, but new research shows Australia already has it too cheap.
Emma Felton from the University of South Australia said Australia pays a lot less for coffee compared to countries around the world.
The cost of rents, wages, specialty beans and milk are also rising, putting pressure on cafe owners.
Emma Felton told The Briefing why Australians don’t pay enough for a cup of coffee:
“For an independent owner operating a cafe with an average turnover of 300,000, this would amount to sort of 22,800 for an annual net profit after all the bills are paid. So it’s not a lot,” Felton said.
Australia pays on average between $4.50 and $5 for a small flat white, meanwhile, it’s about $6.96 in London, A$8.42 in Singapore and as much as $9.95 In Athens.
Felton said the price of coffee is going up around the world as the price of Arabica beans rises.
“We’re used to drinking specialty coffee. And these beans, the Arabica beans are very hard to grow.”
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