Coffee prices may soon reach £5, hurting businesses

Coffee shop owners are worried that the price of a regular cup of coffee could reach £5 within the next few years. They believe this increase would hurt their businesses. An industry analyst suggests that some shops are already charging near that price. Nicola Lockwood, who owns Bells Tea Shop in Lincoln, joined discussions with other coffee shop owners. They agree that £5 for a cup of coffee seems likely. She pointed out that for many people who buy coffee daily, this could add up to a significant cost over time. In Hull, Karen Wattam, owner of Garden Village Tearoom, expressed concern that a £5 price tag would not be acceptable to her customers. She believes it could lead to losing business, especially in their area. Jeffrey Young, from Allegra World Coffee Portal, noted that some drinks already reach £5 when extras are included. He recalled a past worry about coffee costing £2. Now, he says a £5 cup is a reality for many already. The recent rise in coffee prices is partly due to record-high costs in international markets, particularly for arabica beans. Severe weather has affected coffee crops in major producing countries like Brazil and Vietnam. Paul Rooke of the British Coffee Association mentioned that along with coffee bean prices, rising energy and labor costs are also contributing to the increase. Although higher prices may not please consumers, Rooke believes they could benefit coffee producers with better returns. Some shop owners, like Nicola, who currently charges less than £3 for coffee, may find it necessary to raise their prices due to increased costs.