Baguette price war in Melbourne’s famous foodie laneways

A BAGUETTE price war has broken out in one of Melbourne’s most famous foodie laneways as traders fight for a share of the lucrative lunchtime market.

A BAGUETTE price war has broken out in one of Melbourne’s most famous foodie laneways as traders fight for a share of the lucrative lunchtime market.

The arrival of the $3 baguette has sent Centre Place traders into a spin as they compete for hungry customers.

Most traders currently charge about $5 for a baguette after one store undercut the competition from the usual $7 price tag.

The Soup Place has now upped the ante by lowering the price of its range of baguettes to $3.

Owner Joanne Brewer said it needed to act to retain a competitive advantage in the crowded laneway, just off Degraves St, which boasts a dozen food retailers.

Whitney Sak, from Cafe B3 and the owner of the The Soup Place, Joanne Brewer prepare for the battle of the Baguette. Picture: Tony Gough

“We’re making wafer thin margins on the baguettes but it’s all about getting people in the shop,” Ms Brewer said.

“Some customers come in and grab two or three baguettes at a time as they can’t believe the price.

“It’s a competitive laneway so we’re just offering a little gimmick by promoting the cheapest baguettes in Melbourne and possibly Australia.

“Everything in this laneway is cheap, we’re literally giving food away.”

Whitney Sak, from neighbouring Cafe B3, has also been drawn into the price war, offering small baguettes at $4.50 and large baguettes at $6.50.

The shop estimates that it shifts up to 500 baguettes a day.

“It’s a bit of friendly competition, we’ve all been here for at least 10 years, and no matter what anyone else is doing we all understand it’s business,” Ms Sak said.

Perth tourists Holly Drage, 24, and Blair Bell, 22, said they could not believe the price of Melbourne’s baguettes. Picture: Tony Gough

“If people want a cheap lunch, they know where to go.”

Chris Kakavelis, from AIX Cafe Creperie Salon whose baguettes cost $5, said the price war had gone too far.

“They should be more expensive I reckon, our prices used to be $7 but we were forced to go down to $5,” he said.

“The rent keeps going up so you do the maths.

“I don’t think we can afford to go any lower than $5 because all our fillings are top quality meat, we even crumb our own chickens which takes a lot of preparation.”

Perth tourists Holly Drage, 24, and Blair Bell, 22, said they could not believe the price of Melbourne’s baguettes.

“They’re about $10 or $12 back home,” Holly said.

“I might buy 10 of them because there so cheap, that’s unheard of in Perth.

“I will have to come back and get some more.”

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@AndyJeffo