First the £10 pint, now the £6.50 flat white: coffee industry faces inflationary pressures

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First the £10 pint, now the £6.50 flat white: coffee industry faces inflationary pressures

The Guardian · 1 month ago

Coffee prices in the UK are rising sharply, with some cafés now charging as much as £6.50 for a flat white, as the industry faces mounting cost pressures from farm to counter. The article argues this matters because coffee, like beer, is becoming another everyday purchase noticeably affected by inflation, and businesses may soon test the limits of what customers will tolerate. Producers and retailers say they are dealing with a mix of global supply disruption and higher domestic operating costs, making further price increases likely.

The main pressures include extreme weather in major coffee-growing countries, higher energy costs linked to conflict in the Middle East, and rising wages and taxes. Lavazza said arabica prices have risen 230% since 2021 and robusta 325%, while heavy June rain in Brazil and drought in Vietnam have damaged harvests and raised production costs; in Vietnam, fertiliser and fuel prices were up 30% year on year and labour costs 33%. At Lavazza’s flagship London café, a takeaway flat white has risen from £4 to £4.40 and a sit-in one from £5.50 to £6.50, while equivalent drinks cost about £5.20 at Starbucks and £4.70 at Costa in central London.

  • Coffee prices are rising sharply across the UK
  • Weather and higher costs are squeezing the industry
  • Firms warn consumers may not absorb rises forever

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