A humble takeaway coffee in Australia could soon exceed $7, prompting café owners in one state to take action against rising costs.
The Corner Store Café in Toowong, south-west Brisbane, is one of countless venues struggling to turn a profit in the brutal economic climate.
A small flat white there costs $5.20 and owner Matthew O’Brien said he is forced to make adjustments to the menu every three months to keep up.
READ MORE: ‘Wait and see’: Albanese hints at election bombshell
“It’s a very fine balance of trying to put out the best products you possibly can, charge the most reasonable price that you can, and not make things too expensive,” he told 9News.
Phil Di Bella, owner of The Coffee Commune in Bowen Hills, said the staggering cost of energy bills, insurance and keeping on staff has driven up prices.
“Payroll tax hasn’t been reformed in Queensland in over 12 years,” Di Bella said.
“There’s all these red tape issues that are happening that affect businesses in Queensland.”
According to Di Bella, Queensland café owners are only taking home about $1 per cup of coffee after factoring in costs.
He sells an average of 300 per day, making his daily net profit for coffee just $300.
READ MORE: Aussies missing out on almost $18 billion of lost super
“50 per cent of cafés right now are not even breaking even,” he said.
“We’ve got to find that happy [medium] where the café is making a little bit of profit but it’s also affordable for the consumer.”
Di Bella warned there could be mass closures in Queensland if the state government doesn’t act.
In the lead-up to the state election, venues like the Coffee Commune are calling out for help.
In response to the wave of struggling café owners, Premier Steven Miles said his government had supported small businesses by offering $650 elecricity rebates.
FOLLOW US ON WHATSAPP HERE: Stay across all the latest in breaking news, celebrity and sport via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.
links to content on ABC
9News
