“This is happening all around Australia. This is affecting every cafe,” Australian Restaurant and Cafe Association chief executive Wes Lambert said.
“Up to 30 per cent of businesses will feel heavy pressure by these increases, and we’ve heard about bean prices going up as much as 50 per cent,” he said.
“The supply chain to cafes and restaurants, including beans, is often affected by weather.”
A single cup of coffee is predicted to cost from $8-$12 by the end of the year.
Local businesses say they have no choice but to lift their prices.
“We’re not just greedy and trying to make more money,” Little Gossip Cafe owner Fadi Sahan said.
“We’ve got to increase a little bit just to make it viable to stay open.”
It’s not just the price of beans and milk.
Hidden costs like packaging, wages, rent and add-ons all contribute to the price of a quality cuppa.
For those who can’t give up their caffeine fix, your local service station can fuel the cravings without breaking the bank.
These days 7/11 are offering a large coffee for $3. Coles Express and Ampol have offerings for $3.50.
But cafe owners say that with them you’re paying for more than just a drink.
“If you want to enjoy your favourite cafe and your favourite cup of joe, you may end up having to pay more,” Lambert said.
And that’s not the only simple pleasure that will go up in price this year.
Price of beer to increase too
The cost of alcohol is also set to soar with the six-monthly increase to the alcohol excise next month.
Independent brewers say the tax kick could push them over the brink.
”Many that are just on that edge of survival, will not be able to make it,” Independent Brewers Association Chief Executive Kylie Lethbridge told 9News.
“If we continue to put off staff and we continue to close, then that tax revenue is lost anyway.”
The tax is expected to rise between 2-3 per cent, pushing up the price of a pint at the pub to about $15.
“They are the ones doing it really tough and it’s spreading to families, communities.”
The Coalition say they are open to considering cuts.
“All cost of living measures are on the table and up for review,” Ley said.
“This is a general part of taxation law that’s happened on both sides of government now for many years,” Regional Development Minister Kristy McBain said.
The alcohol tax is a revenue stream that brings in millions of dollars for the government.
If changes were to be made, the question would be, what is cut instead.