I’m so taken by how little sense it makes that I think it would be worth a mini research project. It’s not like they grow the beans in Italy or France!
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Would a test be comparing it with the price of ground coffee in a supermarket? Supermarkets quite capital-intensive now because of self-service so comparison isolates barista labour cost changes?
Can’t be arsed doing it obvs, just a thought. Actually would be a v interesting compassion as global coffee prices have doubled over last year, have coffee shop prices nonetheless outpaced supermarkets?
I suspect it has little to do with the costs of raw materials. My hunch is a mix of rent, ownership structure (and therefore what margins are viable) and labour costs. Ownership structure is key, because if a small family firm can survive with a tiny profit it won't tend to jack up prices so much
One of our cafes just shut on Sunday, I'm guessing the timing is not coincidental (I am assuming they didn't say that in the hope that we don't notice they haven't shut and stay away)
Ownership very different. Here big companies dominate the market whereas in Southern Europe a coffee bar is a family firm with probably lots of informal unpaid labour
The whole economy of Italy or France is geared towards ensuring that a coffee costs a euro and a nice aperitif costs two euros. And making the trains go faster. It's not a bad model TBF.
Also, in France at least, a croissant or a baguette is basically a euro or thereabouts and that is just how it is, while in London you can pay £4 for a stale one. It seems like this is just culturally important so it sticks.
Presumably it isn't entirely irrational and is to do with energy costs or high rents. Maybe it's easy to charge 1 euro for a coffee when your espresso machine is power by nuclear fission?!
This is pure guesswork, but who tends to own retail property in France or Spain? I've always assumed part of the issue here is how city centre property has been snaffled up by pension and hedge funds, thus racking up the rents
Italy of course has the standing up Vs sitting down prices. I remember a place in Rome letting us sit down having paid the standing up prices as I was obviously in pain (Iritis, that was fun, best described as like toothache but in the eye)
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Climate change is hurting coffee production, driving up costs, but not evenly.
I've heard some single-origin arabica (artisan) beans have almost tripled in price.
Large suppliers of blends from multiple sources like illy (popular in FR & IT) are less affected.
Then, lower quality robusta beans are less impacted overall.
None of this is to explain the bafflingly illogical pricing in the OP. I've no idea what the shit is going on there.
The case of the missing 5 in the short black pricing
Whereas the independents will be more exposed to vagaries of the market?