Cafe owners make plea to government over razor thin profit margins

9 News National
April Glover
September 17,2024

A humble takeaway coffee in Australia could soon exceed $7, prompting cafee owners in one state to take action against rising costs.

The Corner Store Cafe in Toowong, south-west Brisbane, is one of countless venues struggling to turn a profit in the brutal economic climate.

A small flat white there costs $5.20 and owner Matthew O’Brien said he is forced to make adjustments to the menu every three months to keep up.

“It’s a very fine balance of trying to put out the best products you possibly can, charge the most reasonable price that you can, and not make things too expensive,” he told 9News.

Phil Di Bella, owner of The Coffee Commune in Bowen Hills, said the staggering cost of energy bills, insurance and keeping on staff has driven up prices.
“Payroll tax hasn’t been reformed in Queensland in over 12 years,” Di Bella said.
“There’s all these red tape issues that are happening that affect businesses in Queensland.”
According to Di Bella, Queensland cafe owners are only taking home about $1 per cup of coffee after factoring in costs.
He sells an average of 300 per day, making his daily net profit for coffee just $300.

 

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