Café chains raising prices

Cup of coffee to cost 15% more due to 90% rise in coffee prices in recent months

Reuters | Published: 03.04.11, 08:57

The ongoing global rise in coffee bean prices is being felt by Israeli consumers. Some café chains – including Aroma and Espresso Bar – already raised their prices in January, while others are doing so these days.

Coffee prices have gone up by 90% in recent months, reaching a 14-year high last week.

The coffee beans are only a small part of the cost of a cup of coffee, but the recent months have also seen a rise in raw milk prices.

According to Ilan Shenhav, founder of the Ilan's Café chain, "The cost of coffee beans in a cup of coffee is only about 5% of the overall cost. Together with the milk component, we are talking about 15-20%."

The price of a cup of coffee sold by Israeli café chains is expected to cost consumers 10-15% more.

"The price of all raw materials has gone up by dozens of percentage points," Café Café owner Ronen Nimni told business newspaper Calcalist. "We won't increase the price of coffee by the same percentage, but there is no escape from raising consumer prices."

"The prices of all raw materials are going up, coffee prices are going wild, and there is a rise in sugar and oil prices," said Ofer Gvirtzman, Cup O' Joe's VP marketing and business development. "In the meantime we have raised the price of coffee and are trying to avoid raising the prices of other products."