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Soaring coffee prices may be yet another reason for employees to avoid the workplace and instead work from home.
Inflation over the past two years has stripped away a number of innocent pleasantries for workers, with the morning coffee run being no different. As reported by The Sydney Morning Herald, the price of the average cappuccino has catapulted to an expense that’s beginning to turn away even the staunchest of caffeine addicts.
With coffee drinkers becoming more reluctant to purchase from a regular café and costs rising for businesses, the prices are unlikely to reduce any time soon. In fact, one coffee roaster believes that the average coffee should cost around $7, as any that are under that price means the café themselves are subsidising.
Taking this into consideration, it adds another variable to the argument against coming into the office.
This, of course, isn’t a new argument, with many workers continually mentioning how expensive the overall cost of travelling to and from the office can be during a cost-of-living crisis – with $7 coffees being another expense to add.
Not all agree with this sentiment, however, as HR Leader recently spoke to Sue Parker, executive career coach at DARE Group Australia, about the disgruntled feeling surrounding the current prices of coffee, which she believes stems from a place of entitlement and lack of appreciation to businesses.
“Businesses are not charities, especially small cafes and coffee shops. They need to make a profit to survive and are at the whim of global supply chain issues and costs of beans,” Parker said.
“Add on top, wages, rents, insurances and the time taken to create a wonderful brew – especially for those who ask for complicated orders (soy latte chai, thanks), time and effort increases.”
Although the surge in coffee prices has been a focal point recently, Parker argued that the “whinging” is nothing new.
“People have always whinged about the cost of a cup of coffee as there is an unexpressed entitlement that it should cost no more than $XYZ. It’s nonsense. Also, given that the majority of takeaway coffee orders do not have additional food products, the attitude shows a total lack of respect,” Parker said.
“Interestingly, the complaints often come from high-salary income earners. Those same people boo hoo another $2 or $3 and then buy a $300 outfit and are often spending in the supermarket with rising costs also. But the price of a coffee gets them all hot and steamy.”
Despite Parker’s strong words towards the sentiment of complaining about the price increases, she also recognises many workers are truly struggling financially and how the cost of transport would be even more impactful.
“Will the current cost crises of coffee impact the already volatile and tenuous RTO focus in 2025. If employees are so fickle (especially those on reasonable incomes), it has a lot to say about any ‘get-out-of-jail excuse’ to not come into the office,” said Parker.
Parker suggested a few solutions to stave off the issue; however, dropping the price of coffee wasn’t one of them.
“Companies could partner with local coffee outlets and pay for staff coffees. Or they could add a coffee bonus of circa $40 a month to salaries,” she said.
HR Leader also spoke to EST10 founder Roxanne Calder about the increase in coffee prices, to which she echoed a sentiment similar to Parker’s.
“The pragmatist in me says, ‘people will never stop drinking coffee, and they’ll get used to it’. The cognisant people manager side of me says, it is not about the coffee, it is the rising costs of living. And we should be understanding and show compassion,” Calder said.
Although Calder understands that the issue only exacerbates the current financial struggles that a wide range of workers feel, she believes that strategies that primarily fixate on this problem may be fruitless.
“The reality is though employers too are bearing the brunt of increased costs. So, press pause – if you think the answer is for subsidised coffee cards, a coffee machine, or an onsite barista. What is the return on investment (ROI)?” she said.
“The ‘tea lady’ back in the day wasn’t a lovely gesture, the role returned value. The extra time at your desk (10 mins X twice per day X employees) ... pays. Whatever the initiative, it must have a quantitative return.”
“We also can’t discriminate. What of the tea and smoothie connoisseurs – or the savvy caffeine drinker who pulls in their latte buoyed belt, choosing to reduce their consumption because they can’t afford it? Since when does corporate responsibility extend to assisting with personal budgeting? Are we enabling or disabling? What’s next?”
Overall, Calder deems the coffee-pricing problem as something that shouldn’t prevent workers from coming into the office – and if it does, perhaps employers have some variables to consider.
“Maybe those coffee drinkers who are less inclined to come to the office are not the right team members for you. Even at an increase of 15 per cent on the average coffee price is 81¢. Exorbitant – yes – but to stop you going to the office ... I don’t think so,” Calder said.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
