A leading Sydney restaurateur has warned that Australians could be paying up to $12 for a cup of coffee within the next five to six years, citing rising wage costs and inflation. Speaking at a national food industry forum, he said higher award wages and increasing operational expenses are making it significantly more expensive to employ baristas and hospitality staff.

The average price of a coffee in Australia is already $5.50, about $1.50 higher than before the coronavirus pandemic. Some customers have recently expressed outrage over specialty drinks priced above $10, with additional charges for alternative milks further increasing the cost.

Industry pressures are mounting due to global factors, including extreme weather in major coffee-growing countries such as Brazil, Indonesia and Vietnam. These conditions have driven coffee bean prices to a 47-year high of 2.39 dollars per pound, while wholesale coffee prices in Australia have surged sharply since late 2023. Rising energy, logistics and wage expenses have also added to the burden on café owners.

While businesses are free to set their own prices as long as they are clearly displayed, the restaurateur warned that customers may stop dining out if they no longer see value for money. He said maintaining loyal customer relationships will be critical for hospitality venues navigating increasingly difficult economic conditions.