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Price of a Coffee.

24

Comments

  • Registered Users, Registered Users 2 Posts: 2,280 ✭✭✭JVince


    Too much snobbery on coffee, hence the small "craft" guys think they have to use beans that cost €35/kg, bring on all the showmanship and then have to charge €4-€5

    The fuel stations will go 50c-€1 below this for their automated machine coffee using everyday beans that cost about €10/kg

    For the craft guys, the wages cost about €18/hour on minimum wage (min wage + holidays + prsi + payroll costs) and this is primarily borne by the sales of coffee whereas in a fuel station or convenience store the wage element of the coffee is miniscule.

    Add in rent and rates and the usual costs of business and the coffee shops struggle whereas the fuel stations and convenience stores enjoy good profits.

    Applegreen stated several years ago that a coffee and sandwich provided more profit than a tank of fuel, hence their focus on low fuel margins to attract motorists to their coffee machines.

    As for the european comparison. A single shot espresso can be €1, but its 8g of coffee in a tiny cup and similarly the american at €1.50 is same with added water in an 8oz cup. It is cheaper, but in Spain in the outer Malaga regions a 12oz coffee using a double shot (16g) is €2.50 - €3, in Germany it €3 - €3.50 and in Italy (sicily) its €2 - €2.50.

    I've no issue paying €4 or €5 if it also includes nice seating and relaxing atmosphere to chill out for 30 min.



  • Registered Users, Registered Users 2, Paid Member Posts: 17,543 ✭✭✭✭astrofool


    Fuel has always been miniscule profit for service stations, of the order of 1-2%, not a great comparison.

    Car wash is almost pure profit after the capital cost.



  • Registered Users, Registered Users 2 Posts: 19,309 ✭✭✭✭ELM327


    Starbucks (I know, I know) have surpassed €7 for my usual now, venti white mocha with peppermint.

    But if I want an actual coffee, as opposed to a sugar and coffee and flavour etc, even my local garage on their (new) self serve machines are near €4 for a 'large' americano or cappucino. I say 'large' rather than large because the 'large' are only 16oz, large should be 20oz



  • Registered Users, Registered Users 2 Posts: 21,125 ✭✭✭✭cnocbui


    I bought a second hand Italian espresso machine for about €340 on ebay, of a brand my research suggested had a reputation for longevity. That was in 2017 and it was only a year old. It's made about 7,300 espressos since being purchased. While €340 might seem expensive, it works out to be just 4.7c per shot.

    I found an Irish roaster selling a coffee I had seen on a foreign forum selling the same bean in bulk. From that, I'd estimate Irish roasters have a 400% markup.

    I buy raw beans from the continent and roast them myself. My last order averaged €22.42 per Kg, which was inclusive of the recent price rises. A couple of years ago it was €16.94 per Kg.

    At least two US billionaires who give financial advice for people, say don't buy take away coffee, make it at home and take it in a flask. I can see why.



  • Registered Users, Registered Users 2 Posts: 10,822 ✭✭✭✭John_Rambo


    What town is that & are the leases & rates cheap and is the coffee good?

    I find recently good coffee isn't enough, there has to be some good offerings too, baked pastries etc…

    Either way, there's always going to be people that are willing to pay for good food.



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  • Registered Users, Registered Users 2, Paid Member Posts: 20,709 ✭✭✭✭Bass Reeves


    People pay what they think they afford, whether it's on coffee, alcohol, dining out, furniture, cars houses etc.

    The term for income after taxes and PRSI etc is disposable income. However after normal fixed costs rent, mortgage food, heating etc some treat the rest of there income as disposable. They will spend this income on item that they do not really need and dispose of it.

    Coffee @ 4 euro+ is only a symptom of this, look at the streets of Dublin Sunday morning people getting deliveroo breakfasts, same with evening time deliveroo takeaway. There is people in this country that virtually never cook for themselves and they are not necessarily the wealthy.

    Coffee is a symptom of that. Many outlets have multiple machines for coffee at there delivery points. In most cases a coffee machine returns its initial costs including its overheads in 3-4 months. A .commercial machine will last a bit with 2 years before needing replacing.

    Coffee houses have got in on the act weather it's van type businesses at beaches, car parks or any place there will be a volume of potential customers or coffee bars in urban area,or retail areas.

    The profit margin is significant otherwise they would not be as many of them.

    @4/ unit it 28 euro if you buy one every day, 10 takeaway coffees is 40/ week or over 2k a year spend. In 2023 there was over 200 million disposable coffee type cups used in Ireland.

    Coffee is probably in excess of a one billion euro industry in this country especiallyas its not all disposable cups.. That is about 200 euro per man, women and child in this country.

    For some it's probably as expensive as a drug habit......actually it's is a drug

    Post edited by Bass Reeves on

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 2,499 ✭✭✭McGrath5


    Bought a Sage Barista Express around 4 years ago, cost €500 but easily one of the best purchases I ever made. It makes us 2 to 3 coffees per day at home, I have one in the morning before heading out and that will give me my fix for the day.

    I do buy them out the odd time but it's such an expensive habit at €4 per cup. Colleagues in work buy them everyday before they even shell out for lunch yet moan all the time about the "cost of living".



  • Registered Users, Registered Users 2 Posts: 10,822 ✭✭✭✭John_Rambo


    That's your experience. I've never once met or witnessed someone getting deliveroo stressed Sunday breakfasts! What part of Dublin do you live in?

    I enjoy the odd takeaway coffee, I enjoy the odd coffee with friends and I can afford them!



  • Registered Users, Registered Users 2 Posts: 2,329 ✭✭✭Rocket_GD


    Why can't people just buy what they can afford without other's judging them?

    If they want a takeaway coffee or a breakfast delivered to them on a Sunday morning, let them at it, makes no difference to your life whatsoever.



  • Registered Users, Registered Users 2 Posts: 12,894 ✭✭✭✭the_amazing_raisin


    Wouldn't the fact that there's so many indicate it isn't a very profitable business, since they're all competing

    I'm sure they make some money but I doubt the coffee shop owners are the secret millionaires of Ireland

    If anything the coffee roasters seem to be the ones making money since they seem to be charging a lot more than other countries

    As for people who "don't cook", yes they exist, my wife being one of them since I do most of the cooking. Doesn't make either of us upper class, some people just hate cooking and are willing to spend some of their disposable income on avoiding it

    I doubt many folks are getting their Sunday breakfast delivered regularly, probably when they're severely hungover or have some guests over and don't want to cook a big meal

    Coffee is definitely a luxury item for those buying it from a coffee shop. It's true to say that it's poor economics but it's the same for any kind of eating or drinking out. If that's what people want to soend their money on then that's their choice

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



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  • Registered Users, Registered Users 2, Paid Member Posts: 55,004 ✭✭✭✭tayto lover


    Dundalk. Lots of coffee shops and all charging around 4 euro or higher. I don't drink coffee, just strong tea and I am not a pastry person. I often have tea and a scone which can be around 7/8 euro depending on where you go.



  • Registered Users, Registered Users 2 Posts: 10,822 ✭✭✭✭John_Rambo


    €8 for a tea and scone is a joke. It’s not even about the ingredients (which are dirt cheap), it’s the sheer cheek. A teabag, boiling water, and a baked good that takes 20 minutes to knock together. Coffee at least has a process, some gear, a bit of skill. Tea? You’re paying for the seat, not the scone and you're being ripped off.

    At least good coffee and machinery is expensive and hard to emulate at home unless you're like @cnocbui who appreciates and drinks enough to justify it.



  • Registered Users, Registered Users 2 Posts: 12,894 ✭✭✭✭the_amazing_raisin


    Whatever about the price of coffee, the price of tea from a cafe is truly a rip off

    It's usually around €2.50 for a cup as I recall and the input labour and ingredients probably cost 30c

    At least a lot of places have the cop on to give you a pot with 2-3 cups worth in it

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Moderators, Recreation & Hobbies Moderators Posts: 12,758 Mod ✭✭✭✭igCorcaigh


    Around 3.50 to 3.80 for a flat white seems to be the norm here.



  • Registered Users, Registered Users 2 Posts: 820 ✭✭✭Lemsiper


    You do realise that the only difference in the volume of the Americano is more/less water? Unless you specify the number of shots



  • Registered Users, Registered Users 2 Posts: 1,724 ✭✭✭joebloggs32


    I'm not a coffee drinker but will have 1 or maybe two cups of tea a day max but can just as easilynot have any.

    I am amused by how long people will que up for coffee. I was at an event on Sunday and there was one horse box types set up there selling hot drinks. It had two staff. I was sat opposite the line having a sandwich and a club orange watching it move at a snails pace. The mother in law wanted coffee. She was around 30 minutes in the que.

    Now if there was a tea only line it would fly it and I would have bought one, but I couldn't be ar3ed waiting that long.



  • Registered Users, Registered Users 2 Posts: 9,585 ✭✭✭DublinWriter


    It's never about what something is worth, it's about what people are prepared to pay.

    Personally, I love Nescafe's instant expresso at €8 a jar. I even have the posh little cups. Lasts me a month.

    The quality of Starbucks coffee is awful. It tastes like tea to me.



  • Registered Users, Registered Users 2 Posts: 8,435 ✭✭✭Esse85


    Most people are addicted to coffee and don't even realise it.



  • Registered Users, Registered Users 2 Posts: 1,234 ✭✭✭chrissb8


    Getting annoyed at the coffee shops saying they just have to charge that, there's a guy in Tipperary charging €5 an Americano. Trying to justify it on tik tok.

    Sometimes you have to take a step back and just say it's just a coffee, it can only get so expensive. You can go on and on about the beans and roasting but it's a coffee. Beans and hot water. If you're charging that much for a cup maybe you shouldn't be doing business.

    I don't care about the cost of business and you telling me why it has to be that much. I care about what is going out of my pocket as much as they care about what's going in to theirs so a halfway point has to be met.

    Same with pizza costing upwards of €20+ euro in some places. It's bread, tomato and cheese. At some point, you can't justify something so simple, being so expensive.



  • Registered Users, Registered Users 2 Posts: 2,514 ✭✭✭thatsdaft


    6 euro in Naples for a pizza and it’s about 10x better than anything you find here



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  • Registered Users, Registered Users 2 Posts: 16,638 ✭✭✭✭Fr Tod Umptious


    If he's charging that much for a coffee then there is either a market for it or not.

    If there is not and he can't cut his costs so that he can make a decent profit from selling a coffee cheaper then he is gone out of business.

    You can't expect people to sell stuff at a loss just because you think their price is too expensive.



  • Registered Users, Registered Users 2 Posts: 3,346 ✭✭✭davo2001


    I used to enjoy a takeaway coffee, also have a machine at home that i use 2-3 times a day.

    But the takeaway coffees just aren't worth it anymore, €4.50 for a flat white in my local establishment in North Tipp.

    I used to get them 2-3 times a week but now, maybe one a fortnight.

    Can't justify it anymore.



  • Registered Users, Registered Users 2 Posts: 12,894 ✭✭✭✭the_amazing_raisin


    An espresso is coffee plus water plus the labour of making one

    A pizza is flour, yeast, water, tomato sauce, cheese and toppings plus the labour of making one

    I'll leave it to you to figure out which of those is the most expensive

    There's also tax, rent and bills as extra costs

    I'm sure many coffee shops and pizzerias make a profit but I doubt they're raking in millions. Honestly as business models go they seem pretty terrible since you're heavily dependent on the price and quality of labour rather than the ingredients

    If you don't like paying for them then don't, make your own or do without. That's the handy thing with discretionary spending, you can stop if you want

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Registered Users, Registered Users 2 Posts: 1,234 ✭✭✭chrissb8


    And that's from their side. As I said, justified through business costs. Fine, that's a reasonable approach, but when people complain it's just too expensive for just a cup of coffee, that is all it is to me or anyone, a cup of coffee.

    My annoyance comes from coffee shops opening now and just charging that. I'm talking about the extortionate price for coffee, and if businesses are opening as coffee shops, and then thinking €5 is acceptable, then that is annoying. Then we will hear the cost of business, labour….we're not short on coffee shops anymore. People will open a coffee shop because people will pay that, but this whole thread is the frustration of a price of coffee so that's my annoyance.

    I don't know what it is with people stating the obvious in their posts.

    Along the lines of "there must be a market for it", or "you don't have to spend your money on that". Yeah. I know. That's not what I'm talking about. So what's your point.

    "just don't buy it" but I want to buy a simple cup of coffee and not pay the price of a sandwich in some places for it. So I'll complain. Which is what this thread is for, ok.



  • Registered Users, Registered Users 2 Posts: 505 ✭✭✭Pixel Eater


    So where is the best place - bang for your buck - for coffee in Dublin?



  • Registered Users, Registered Users 2 Posts: 2,499 ✭✭✭McGrath5


    Where are these cafes charging €5? I know of Avoca in Powerscourt is about that, put you are paying for the location.



  • Registered Users, Registered Users 2 Posts: 1,148 ✭✭✭Hyperbollix


    Thats my experience of Italy too. Yes, you might pay a lot less than Ireland but they serve you a cappuccino in an cup only slightly bigger than an espresso. I needed two cups to wet my whistle enough to eat a very dry croissant. They, of course, say we are vulgar northern european pigs who expect coffee to be sold in buckets. I say it's a massive racket to empty the pockets of gullible tourists.



  • Registered Users, Registered Users 2 Posts: 1,234 ✭✭✭chrissb8


    The Old Barracks Coffee Roastery in Birdhill village in Tipperary. I was highlighting it as an extreme example, but the coffee around the corner where I live is €4.30 for an Americano.



  • Registered Users, Registered Users 2 Posts: 2,499 ✭✭✭McGrath5


    The Old Barracks in Birdhill looks good tbf, their adults only policy is interesting.



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  • Registered Users, Registered Users 2 Posts: 2,685 ✭✭✭rogber


    I can tell you in Germany between 3.80 and 4.50 is fairly standard for a coffee now from a cafe and a packet of filter coffee at supermarket has jumped from about 6.50 at start of year to over 9 euros now. It's crazy.

    I'd be amazed if France or Italy or Denmark or anywhere else is any cheaper, except for in small towns maybe



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