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September 20, 2010 | by  | in News | [ssba]

Students to Cough Up More for Coffee

Staying awake in lectures is set to get more expensive as coffee prices increase next month.

A number of coffee shops around Wellington are preparing to raise the price of an average cup of coffee from 1 October.

The rise in GST, from 12.5 to 15 per cent, along with sky-high coffee bean prices mean many cafe owners are left with no option but to increase their prices.

The cost of coffee beans is at a 13-year high, and in the past year the price of beans has increased by 35 per cent. Until now, these increases have been absorbed by businesses but with the increase in GST, the costs need to be passed on to caffeine consumers.

Wellington cafe Caffe l’Affare will be increasing each cup of coffee by 50 cents. This means a flat white will now be $4.00.

Speaking to 3 News, Marketing Manager Jessica Godfrey says she knew the price hike would have to come but it is the best option if people want a quality caffeine fix.

“We don’t want companies to have to look at lower grade coffee,” she says.

Popular late-night student haunt Midnight Espresso is proudly keeping its prices the same.

“Coffee is what this business relies on… customers come in expecting really low prices and that’s what we’re going to give them,” says barista Sheryn-May Kirk.

Campus cafes Ramsey House and UniStop will be increasing their prices.

A spokesperson for Ramsey House says they do so very reluctantly.

“We don’t want to do it… we want to keep it [the increase] as small as possible.”

Peoples Coffee at vicbooks say they will probably raise coffee prices, but are currently in negotiations. They may also be increasing the prices of some food, such as cakes, but say this is not because of GST.

Bucking the trend, Illott Cafe in Kirk decreased its prices on Monday 13 September. A medium flat white now costs $3.20.

“We don’t think an increase because of GST is necessary,” the manager says.

In addition, students will now have less choice as to where they will buy their coffee on campus. On 2 October, Galleria in Maclaurin will be closing its doors. Mount Street Cafe is also closing in two weeks due to construction in the Student Union Building as part of the Campus Hub Redevlopment.


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