WHY IT COSTS MORE (AND WHY IT’S WORTH IT)
In today’s coffee culture, there’s a tendency to compare every cup of coffee by price alone. “Why spend $5 on a latte when I can get a $1 coffee from the servo? Or $60 for a kilo of beans when I can get it for $15 from the supermarket?” At first glance, it might seem like a no-brainer to opt for the budget-friendly option. But when you dig deeper, it becomes clear that comparing specialty coffee to budget coffee is like comparing fine dining to a drive-thru burger. Both have their place, but they’re worlds apart in quality and intention.
how can they sell coffee for $15 per kilo?
We hear this question a lot. It’s all about scale, margins, and strategy. Supermarkets and convenience chains typically operate on a high-volume, low-margin business model. They’re not trying to sell an experience, they are selling convenience—they’re trying to move massive quantities of product as quickly as possible. By sourcing commodity-grade beans in bulk and automating their processes, they can keep costs as low as possible.
But here’s the twist: often, products like cheap coffee act as loss leaders. A $1 cup of coffee might not make them any money at all. Instead, it’s a strategy to get you in the door, where you’ll hopefully buy higher-margin items like snacks, sandwiches, or even fuel. The same goes for $15/kg beans: they’re priced to grab attention and drive traffic, not necessarily to deliver a quality experience.
the psychology of pricing.
WHY CHEAP COFFEE FEELS ‘GOOD ENOUGH’
There’s a psychological aspect to cheap coffee. When you’re paying $1 for a cup, your expectations are low. If it’s hot, caffeinated, and coffee-flavoured, it’s often considered a win. But specialty coffee is a different experience altogether.
Specialty cafés don’t just serve coffee; they craft it. From sourcing beans that are grown and harvested with care, then expertly roasted to maximise the complex flavours, through to the highly trained barista that serves it, every step is intentional. When you pay $5 for a latte, you’re not just paying for the liquid in the cup—you’re paying for the artistry, the skill, and the story behind it.
why specialty coffee costs more.
AND WHY IT’S ABSOLUTELY WORTH IT
Specialty coffee businesses operate on a completely different model. Here are a few key factors that influence their pricing:
- Quality of the beans: Specialty coffee starts with high-grade beans, often purchased directly from farmers who are paid fair prices for their crops. These beans cost significantly more than the commodity-grade beans used in budget coffee.
- Ethical & sustainable sourcing: Reputable specialty roasters are also taking into account sustainable farming practices and the ethics of the farms they buy from. Ensuring that both the environment and the workers at the heart of the coffee supply chain are being looked after too.
- Quality control: Instead of roasting massive quantities of beans to a one-size-fits-all profile, specialty roasters focus on smaller batches, dialing in the perfect roast for each origin. The coffees are continuously cupped and tested to ensure the best result possible.
- Skilled labour: Baristas are highly trained professionals. They invest time and effort into mastering their craft; understanding extraction, milk texturing, and flavour profiles to ensure every cup meets a certain standard.
- Customer experience: When you visit a specialty café, you’re paying for more than just coffee. You’re paying for a thoughtfully designed space, great service, and an atmosphere that invites you to sit and savour your coffee, rather than grab-and-go.
reframing the conversation.
DIFFERENT STYLES FOR DIFFERENT NEEDS
Instead of asking, “Why is specialty coffee so expensive?” perhaps we should be asking, “What am I looking for in this moment?” Budget coffee serves a purpose. It’s fast, cheap, and convenient. But specialty coffee offers an entirely different experience—one that values quality over quantity, connection over convenience.
It’s time to stop comparing these two styles of coffee as if they’re playing in the same arena. They’re not. Budget coffee is about efficiency. Specialty coffee is about excellence. Both have their place, but they’re not interchangeable.
the true value of specialty coffee.
When you invest in a cup of coffee from a specialty café, you’re supporting a chain of people who care deeply about their craft—from the farmer to the roaster to the barista and everyone in between. You’re not just buying coffee; you’re buying a story, a connection, an experience, a moment of joy.
So next time you’re tempted to compare the price of a coffee from your favorite café to a budget option – or your neighbourhood cafe trying to stay afloat with a multinational corporation – take a step back. Think about what goes into each cup. And remember: some things are worth investing in.
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