Melbourne’s most expensive and cheapest places for coffee
WE’RE known for our coffee obsession, but some Melburnians are paying a lot more for their coffee than others. Here’s where you pay the most — and least.
Melbourne
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THE caffeine hit comes at a cost in Melbourne, with hip pockets suffering at varied rates across town.
Analysis by Square, an app that tracks retail sales and inventory, over the past year found that
while Prahran and North Melbourne coffee lovers can expect to pay an average cost of $4.50 at their favourite cafe, coffee is likely to be $1 cheaper in Parkville, costing an average of only $3.50.
Australian Retail Traders’ Association executive director Russell Zimmerman said rental costs are the main explanation for the variation in cost.
“If you’re operating in a big up-market shopping mall compared to a shopping strip in a low-key suburb, the price of your coffee will vary,” Mr Zimmerman said.
“The level of service you’re prepared to give is also a factor — if you need more staff that will mean wages and it will reflect in the price of your coffee.”
The owner of Standing Room Cafe in Parkville, Thomas Kelly, agreed that rents are the key to keeping coffee prices low.
“While our rent isn‘t necessarily cheaper per square metre, we have a very small space because we’re just doing takeaways and we’re situated on campus at Melbourne University which has big communal areas for people to take our coffee and go and sit somewhere else,” Mr Kelly said.
“But we’re targeting students so we’re very conscious of keeping prices low for them. That also means we have a captive audience so we have high volume and keeping prices down is definitely good for business.”
The 12 month analysis of 1.5 million Australian cafe goers also found that cafe latte is the most popular type of coffee sold in Victoria, Queensland, West Australia and the Northern Territory, with New South Wales and Tasmania favouring cappuccinos. But Queensland coffee lovers are likely to pay more handsomely for their coffee, paying an average of 6 per cent more than Victorians.
The time of day people drink their coffee varies with Sydney waking up with their coffee, buying their first at 8am while Melbourne warms up to the idea, with peak coffee sales being at 9.30am.
“Most people in Sydney get their coffee on the way to work,” Mr Zimmerman said.
“In Melbourne, people tend to go to work and then go out to grab a coffee. It’s easier to walk out and get a coffee in Melbourne because of the number of cafes and just the terrain is easier.”
Australian Square manager Ben Pfisterer said the study reveals unique insights into industries and independent businesses.
“The report demonstrates that customer demand and price sensitivity can vary dramatically by location,” Mr Pfisterer said.
WHO PAYS THE MOST AND LEAST FOR COFFEE AROUND VICTORIA
Parkville: $3.50
Coburg: $3.57
Braeside: $3.65
Bendigo: $3.71
Collingwood: $3.71
Balaclava: $3.80
Port Melbourne: $3.81
South Melbourne: $3.82
Ballarat: $3.87
Richmond: $3.93
Lilydale: $3.94
Rowville: $3.96
Geelong: $4
Flemington: $4
Melbourne City: $4.03
Carlton: $4.04
Brighton: $4.04
Warrnambool: $4.06
Mentone: $4.25
North Melbourne: $4.50
Prahran: $4.50
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