Tracking the Cost of a Good Cup of Coffee
One of the first things you normally do when setting up a coffee van business is work out a projected income, which means you need to decide what you’re going to charge people for their morning brews.
Thankfully, at Really Awesome Coffee we do the heavy lifting for our franchise partners and provide a price list for them. However, it’s still worth having a look at the changes in coffee prices in recent years to understand how we price our americanos, lattes, and macchiatos and how we stack up against the competition.
Takeaway coffee prices have soared lately, having increased by 22 per cent between August 2021 and July 2022 alone at some venues.
The Guardian reported that a small espresso at Starbucks had shot up to £2.20 over the course of 11 months, while a Pet a Manger medium cappuccino rose to £3.05 .
Although this seems a lot for small coffees, increasing prices have meant Brits expect to pay more and more for their favourite drinks.
In fact, a Sunday Express investigation recently found certain coffees at Costa can now be as much as £6.65 when choosing extra shots, different milks, and luxury toppings.
Even the basic drinks, however, are typically between £3 and £4.
The coffee chain is not on its own, as Starbucks charges £6.15 for a large latte with an extra shot of coffee, whipped cream, caramel drizzle and cinnamon dolce syrup.
Caffe Nero, another huge coffee retailer, sells a grande cappuccino with two shots of espresso, coconut milk and vanilla syrup for just slightly less at £5.95.
While these seem steep for a caffeine kick, some people even pay up to £28 for their coffee in London. Despite the sky-high price, there still seems to be a target market for pricey coffees such as these.
In fact, according to Nescafe, us Brits cannot do without our coffee, even if it does cost us a small fortune.
Although we are famous for our love of tea, we still collectively drink 95 million cups of coffee a day, with this having increased from 70 million in 2008.
Lots of people do make their own instant cups at home, but many, including commuters, office workers, and travellers, pick up a latte or flat white regularly.
Statistics even showed that 80 per cent of coffee shop consumers drink coffee out at least once a week, while 16 per cent visit their favourite cafe or coffee van every day.
According to the figures, Brits spent £4 billion in high street coffee shops in 2020. However, this is likely to be substantially higher these days, thanks to surging prices.
Despite this, demand does not seem to have abated, and it remains one of the luxuries many people are clinging on to, as they just can’t recreate their favourite blend at home.
Although prices will vary depending on location, size of drink and extras, coffee sellers can be confident they can price their goods competitively and still see return custom.