Since coming back from the London Coffee Festival a few weeks ago, we have been musing about the new product’s and trends that were there in abundance again.
The one thing that struck us was how everything there has gone up in price for the visitors and us, from the entry fee to the carpark across the road.
The latest research from CGA & Prestige purchasing shows that foodservice inflation, i.e. what the business pays for the ingredients has hit 9.8% in March 2019.
Combine this with the rise in minimum wage and employer pension contributions then you can easily understand the pressures operators face.
On the other hand, when we talk to clients who are struggling to make a decent profit, they always worry about losing customers if they put their prices up.
The big chains manage their pricing scientifically; they have shareholders to please, the independent operator with only the owner to please is much less calculated often to their detriment.
The ideal independent coffee shop customer is more interested in value than price. The value of an item is what something is worth rather than what it costs, and consists of the whole marketing story built around it, from provenance to visual appeal.
So put up your value, and you may feel better about putting up your prices.
Complete this two question survey about how you manage your pricing. CLICK HERE