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Trung Nguyen, who often set the benchmark for coffee pricing , has had significant price increases over the last year with one every quarter and this last one was 20%. All of our other suppliers and Viet-coffee can no longer absorb the increasing price of coffee and here's why...
At home ongoing increases in input costs for cafés with almost all expense categories having increased costs
Expense Category Percentage total costs
Labour 30/35%
Cost of Goods Sold 25-35%
Rent or lease 15%
Utilities 5-10%
insurances 3-5%
Marketing / Advertising 5-10%
Equipment Maintain Repair 2-5%
Supplies & inventory 5-10%
Point of sales fees 1-2%
I can't see one of these costs that has not increased!.
The coffee component of a cup of Joe is only a small part but if the price doubles and milk price is increased and labour and utility charges are up then for café’s to stay viable they have to put their prices up!
All leading to even though the price is up it’s still a better deal to make your own.
If you have time a phin coffee can be the cheapest way to have your coffee today.