Inspired by the philosophy of Victor Antonio
“Price is a one-time thing. Cost is a lifetime thing.”
— Victor Antonio
This quote has never been more relevant than it is today in the specialty coffee industry. Across Australia, the average flat white still sells for under $5.50, even as the cost of doing business has surged, green coffee, labour, utilities, rent, milk, equipment, compliance… it’s all gone up. But retail prices? Largely stagnant.
This is not sustainable.
We’re not just underpricing our product we’re undercutting the entire value chain: our baristas, our producers, our equipment investments, and our ability to offer truly great coffee. The consumer might pay less at the register, but the café pays the price indefinitely.
The Hidden Cost of Cheap Coffee
Cheap coffee comes with consequences:
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Barista burnout
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Eroded quality standards
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Unsustainable sourcing practices
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Limited reinvestment in training or innovation
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Brand dilution through perceived commoditisation
When we treat coffee as a commodity instead of a craft, we send the message that skill, ethics, and experience don’t matter. But they do, and your pricing should reflect that.
Price as a Marker of Leadership
Consumers today don’t just buy products, they buy values. They care where coffee comes from, who roasted it, how it was sourced, and why it tastes better than the $2.00 servo version. Yet many café operators still hesitate to price with confidence.
We need to reframe the conversation:
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Don’t compete on price. Compete on value.
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Educate your customers. Show them why it’s worth more.
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Price unapologetically. You’re not gouging; you’re respecting your supply chain and your team.
🛠 Action Steps for Café Operators
| Step | What to Do |
|---|---|
| 1. Audit Your Costs | Know your true cost per cup, labour, inputs, rent, overheads. |
| 2. Segment Your Menu | Offer tiered options: core blends, premium singles, alt milk surcharges. |
| 3. Train Your Team | Empower staff to talk about value, not just take orders. |
| 4. Communicate Transparently | Use your menu, walls, and socials to tell your sourcing and pricing story. |
| 5. Hold the Line | Don’t drop your price to match the café next door. Lead instead. |
Final Thoughts
If you’re charging less than it costs to sustainably run your café, you’re not delivering value you’re eating yourself alive.
Remember:
Price is what they pay once.
Cost is what your business pays forever.
Now is the time to step up, not shrink back. Raise the price. Raise the bar. Raise the standard.
Your coffee, and your community, deserve nothing less.
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