It’s a Sunday morning, and you and your partner head out for your usual walk. First stop? That all-important coffee fix. It’s warm, so an iced coffee feels like the obvious choice. You tap your phone on the reader, barely thinking about it, and go on your way. Then the bank notification pops up. $16.
You freeze, double-checking the receipt on your phone. Surely there’s been a mistake? You glance back at the counter, but the barista is already busy with other orders. No mistake. Just a totally normal transaction. You turn to your partner, baffled. “When did coffee hit $8? And hang on… they put ice in it. Doesn’t that mean less milk? Shouldn’t it be cheaper?” 
Wrong.
Welcome to the new world. Keep this up, and you might need to refinance your mortgage just to afford your daily brew. And here’s the kicker: it’s only going to get worse.
Rising coffee prices are being pushed higher by fears of poor weather conditions in Brazil and Vietnam, two of the world’s largest coffee suppliers. Analysts warn these setbacks could hurt next year’s harvest, throwing supply chains into disarray.
But it’s not just about the beans. Demand for coffee is surging, especially for varieties that use more beans per serving. Ready-to-drink coffee beverages are rising in popularity, with major brands investing millions to capitalise on the growing trend. These sleek, trendy cans have become supermarket staples, flying off shelves at an unprecedented pace. Cold brew, in particular, requires twice as many coffee grounds as a standard drip brew, putting even more pressure on an already strained global supply.
And that’s only part of the story. Hospitality businesses are facing a perfect storm: rising rents, increasing wages, skyrocketing energy costs, and more expensive ingredients. As prices go up, some customers stop coming, which forces prices even higher to make up for the lost revenue. It’s a vicious cycle.
So, what’s the solution? Because let’s face it—coffee isn’t just about caffeine. It’s a ritual, a moment of joy, and for many, a way to connect with their favourite local café.
Here at Business Class, we wish we had a definitive answer. The truth is, we don’t. But if you look closely, there are still a few gems out there serving up a cappuccino for $4-ish. If they can do it, surely others can, right? Surely.
