How your daily flat white is about to get a lot more expensive

Honey & Walnut Patisserie opened in December 2021 and, with rising costs of milk and coffee beans, are worried they will have to raise prices.

With the cost of living rising, one cafe owner has revealed the pressure on her business to keep customers happy and support her family.

Nelly Kalamvokis, her husband Peter and friends Peter and Angela opened up Honey & Walnut Patisserie in Dulwich Hill, in Sydney’s inner-west, in December 2021.

The owners have more than two decades worth of hospitality experience between them – but Nelly said the pressure is felt more than ever.

“We’re really impacted by rising costs – whether it be coffee, milk or our produce,” Mrs Kalamvokis told news.com.au.

“We’re seeing a decline in people wanting to spend too much and we’re worried.

“With the rising costs, as a new business, we are scared to raise our prices to cover what we are paying.”

Picture: Supplied

Mrs Kalamvokis, a mother-of-three, said the patisserie not raising its prices means it’s harder to pay bills at home as, not only are their profit margins smaller but their household bills and grocery costs have risen.

Currently, the business charges $4 for a regular latte with additional costs for alternative milks.

But – to cover costs – the cafe will have to raise coffee and baked goods by 12 per cent after milk prices rose and the cost of making their trademark spanakopita, a Greek pastry, doubled.

Mrs Kalamvokis said the owners have held off as long as they can on choosing to move forward with the price rise, scared of customer feedback and losing business due to being relatively new.

The owners don't want to pass on the cost to customers. Picture: Supplied

But the reality is the owners have been discussing it for a while and are on the verge of having to bite the bullet.

In the meantime, the cafe and its owners aren’t cutting any costs to lessen the burden on themselves.

“Our number one thing is quality, as well as having a range,” Mrs Kalamvokis said. “We bake everything on site, so nothing is basically outsourced.

“And we pride ourselves on having a quality range with high quality range produce.”

The cafe owner’s concerns come as inflation soared to a massive 6.1 per cent, with the leading factors being fuel and new dwellings.

The patisserie, owned by a group of 4, began business in December 2021. Picture: Supplied

Warnings of your average flat white becoming more expensive isn’t new – with the Cafe Owners and Baristas Association of Australia president David Parnham, speaking about it in March.

He revealed your favourite warm beverage could jump to $7 by the end of the year.

“What’s happening globally is there are shortages obviously from catastrophes that are happening in places like Brazil with frosts and certain growing conditions in some of the coffee-growing areas,” he told the ABC.

“The cost of shipping has become just ridiculous.

“It’s nearly five times the container prices of two years ago due to global shortages of containers and ships to be able to take things around the world.”

Mr Parnham said the average $4 price for coffee paid at the moment was long overdue to increase, but businesses had tried to avoid passing additional costs onto the consumer.

Even the sweet treats the patisserie makes on-site are becoming more expensive to make. Picture: Supplied

It’s not only the beans that are becoming more costly, but milk is on the rise as well.

Coles and Woolworths announced earlier this month that their respective supermarkets would charge more for homebrand milk from this week in yet another hit to household budgets.

The increases are being chalked up to rising prices at the farm gate which are being passed on to consumers.

Coles has already adjusted its price tags and Woolies will follow from Friday.

Both will charge $1.60 for a litre of homebranded milk, $3.10 for two litres and $4.50 for a family-sized three litre.

It’s an increase of 25c on the one litre, 50c for two litres and a 60c jump on three-litre bottles.

Coles will also increase the cost of its long-life UHT milk from $1.35 to $1.60.

Originally published as How your daily flat white is about to get a lot more expensive