Aussie coffee culture is in serious trouble

About this Video

• Video Title: Aussie coffee culture is in serious trouble
• Channel: Coffee Coach | Ryde Jeavons
• Speakers: Ryde Jeavons
• Duration: 00:25:59

Introduction

This video discusses the challenges facing Australian coffee culture. Ryde Jeavons, the speaker, argues that the industry is facing a crisis due to rising coffee bean prices, increased operational costs, and the persistent expectation of cheap coffee from consumers. He explores the historical context of Australian coffee culture, highlighting its evolution and the factors contributing to its current predicament. He also proposes a potential solution: a shift towards increased home coffee consumption.

Key Takeaways

• Rising Coffee Prices: The global coffee price has doubled in the last year, significantly impacting cafes' profitability. This increase is unprecedented and unsustainable for many businesses.
• Cost Increases vs. Price Stagnation: While coffee bean prices have dramatically increased, operational costs (wages, electricity, cups, etc.) have risen even more sharply, exceeding the increase in coffee prices. Australian consumers, however, continue to expect relatively cheap coffee.
• Cafe Oversaturation: The Australian market is oversaturated with cafes, leading to intense competition and a "race to the bottom" on prices, making it harder for businesses to be profitable.
• The "Cheap Coffee" Expectation: Australian coffee culture has fostered an expectation of cheap, high-quality coffee, which is no longer economically viable given the increased costs.
• Opportunity in Home Coffee: Jeavons suggests that a shift toward home coffee consumption could be a solution, allowing consumers to appreciate the value and cost of high-quality coffee while supporting cafes in a more sustainable way.