A Sydney cafe and patisserie owner has spoken out about the price hike dilemma business owners are facing: keep customers happy or raise prices accordingly.
Honey & Walnut Patisserie owner Nelly Kalamvokis told news.com.au Australia’s 6.1 per cent inflation rate was putting a lot of pressure on businesses.
“We’re really impacted by rising costs – whether it be coffee, milk or our produce,” Nelly said.
“We’re seeing a decline in people wanting to spend too much and we’re worried. With the rising costs, as a new business, we’re scared to raise our prices to cover what we are paying.”
With the most recent increase in milk prices, Nelly said the cost of making their spanakopita doubled and in order to cover costs, they would need to raise their coffee and baked goods prices by 12 per cent, and that their decision to not raise prices has made it harder to pay grocery and household bills at home.
Last month, both Coles and Woolworths announced that they would charge more for home brand milk, attributing the 25c increase per litre to rising prices at the farm gate which are being passed on to consumers.
However, Nelly and cafe owners alike are also contending against the rising cost of coffee making more broadly.
In March, president of the Cafe Owners and Baristas Association of Australia, David Parnham, told ABC News that coffee lovers could be paying up to $7 for a regular cup by the end of the year, citing global shortages in beans and the cost of shipping.
“Our number one thing is quality, as well as having a range … and we pride ourselves on having a quality range with high-quality range produce,” Nelly said.