Espresso Pounds and Pence

Feb 17, 2012

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In:Uncategorized

When can we expect coffee prices to fall?

The NYC (New York ‘C’) market, where all Arabica coffees are traded,  fell to 18 month lows recently… nudging below $2/ Lb

This vs the dizzying heights of $3+ / Lb the market scaled a year or so ago

Now, if we consider the fact that on the High Street a standard cappuccino retails for say £2-50, there’s one heck of a margin in there for the operator

Ok- I know that there are staff and rent and rates and shop fitting costs etc…..but let’s get to the brass tacks and consider the coffee cost alone….. As this is surely the most important thing in a coffee shop wouldn’t you agree?

Assuming a simple 50% Brazils and 50% Central American blend (non accredited please!!)  and an average differential of say +20 c / Lb, this would mean that a year ago a Lb of green coffee could have cost $3-20

This equates with roasting loss etc to a cost per 7 g of around 3.75p

Today on the same differential basis the same 7g costs 2.6 p

Around a penny cheaper a shot… that’s an extra margin of £5 per day or nearly £2000 per store over the course of a year… and when you consider that the chains have hundreds of stores it starts to add up!

Now, I am not asking for cappuccino prices to therefore be reduced to £2-49…Big Deal!

No… But I am asking for the 10 / 15 / 20 / 25 p per cup increases of the last 12 > 18 months (introduced as the NYC moved upwards) to now be reviewed and scaled back….it seems only fair

You may have noticed that we here at Aromo have simplified and in many cases reduced our pricing recently…

We want to recognise and pass on any benefit we can to you our dear customer in these straightened economic times…

We know you are all savvy clients, because you have had the  wisdom and fore sight to join the growing ranks of those who enjoy espresso the ESE pod way…. ne mess, no fuss,  recyclable…you know the score and you know ESE Espresso is as good as it gets!

This article was written by Guru who writes for aromocoffee.co.uk, the UK’s leading online retailer of 44mm E.S.E espresso coffee pods

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