Cafés who have tried to keep prices down by absorbing previous minor coffee price rises have a dilemma. Do they try to live with a big price rise by making a marginal increase, or put prices up in line with the wholesale price?
The smart cafés look regularly at their margins. If the overall prices that go into making a cup of coffee –including milk, wages, rent etc – are up 20 percent, they lift their prices accordingly.
There’s always the classic danger of not lifting prices in small bites regularly. If you don’t, you’ll be forced to make an even bigger price rise later.
And in a situation as now with a big lift in coffee bean prices, let your customers know why they have to pay more.
The same applies to any business facing rising costs, not just cafés.
