Aurora Complexus wrote Today at 1:46am:
Dnarever wrote Yesterday at 8:02pm:
Quote:businesses are making roughly $1 profit per coffee
Back when I was making coffee the cost per coffee was about 20c per cup. Sells for around $4 per cup sell 30 cups an hour and pay $17 per hour labour.
That is about $97 per hour. Coffee is currently expensive.
Well yes, labor cost is a factor. But it's been tied to inflation for donkey's years.
The main reason cafe prices are so expensive, is rental property cost. Cafes are generally on rental property, and property near railway stations or near/in malls, has become much more expensive to rent. Far more so than private property which isn't so well positioned (and the private property near transport hubs or retail, is also expensive but usually sold outright rather than rented.)
Long story cut short: cafes have to pay more rent, it's why their prices have increased.
That’s exactly right.
But I’m going to say… since being overseas a month… prices from England and Europe are a heck of a lot more expensive … but maybe because our Australian dollar is worth practically half the value?
Pizza for instance in London… we can pay up to $16 here in OZ…. There it is £19 which is equivalent to $40 Australian!
And….we get a bottle of water with glasses complimentary here when we dine out… overseas there’s no such free service.
Coffee was $5 euro which is equivalent to $8.50 AU
Ice cream $6 eu = $9.10 au
All I was doing all the time was calculating in my head what it really cost us!
I hardly had coffee or ice cream!