A cafe chain, with an outlet on Church Street and another in Jayanagar, is increasing its coffee prices in November.
Credit: DH photo
Cafes and restaurants in Bengaluru are increasing the price of their coffee as bean prices rise.
Internationally, bean prices have risen up to 60 per cent in the last three months. Karnataka is India’s biggest coffee grower, and prices in India have also been on the rise. The price of roasted coffee beans has increased by Rs 100-200 in the last three months. It currently costs between Rs 800 and Rs 1,200 for 1 kg of roasted coffee beans.
At The Caffeine Baar, with outlets on Church Street and in Jayanagar, a cup of cappuccino is going up from Rs 200 to Rs 220 in the next 10 days. The cafe uses Arabica beans. “With prices shooting up by 40 per cent, we had to make this decision. While we are not worried about the customers on Church Street, we are a little wary about how the Jayanagar crowd will react,” says Poojya Prasad, cofounder. The cafe’s most expensive coffee is priced at Rs 320.
At Maverick and Farmer, with branches in Halasuru and Koramangala, prices are set to go up by 10 to 20 per cent in the new year. “We are taking a bit of a hit currently. We are working on a new pricing to counter this,” says Ashish D’abreo, cofounder. Currently, a hot coffee ranges between Rs 180 and Rs 290, and a cold coffee between Rs 250 and Rs 340. The brand is eliminating chocolate products. “Chocolate prices have also been rapidly increasing. This way we can balance things out,” he adds.
A price hike is inevitable, says Nikhil Menon, chief operating officer, Mannheim Speciality Roasts. “At one point this year, the price of robusta was higher than that of Arabica. That is unheard of. It has been a bad two years for the industry,” he says. The brand plans to increase prices towards the end of the year. Its coffee prices range from Rs 120 to Rs 225.
Waiting it out
Indiranagar-based Humble Bean Coffee is preparing for an increase in the upcoming financial year, says Soomanna M M, cofounder. Nerlu, with outlets in Gandhi Nagar and Indiranagar, hopes to hold out for as long as possible.
“Lately, we have been paying 10-15% more to our roaster, but that is not reflected on our menu. We are trying to balance it out,” says Shibani Murlidhar, cofounder. A coffee at Nerlu averages at Rs 220.
Impact on filter coffee
Darshinis have increased the price of their filter coffee by Rs 2 to Rs 5. A coffee is now priced between Rs 12 and Rs 35.
Vidyarthi Bhavan in Gandhi Bazaar increased the price of its filter coffee from Rs 23 to Rs 25 in May. Arun Adiga, owner, is mulling a second hike. “This does not just have to do with the coffee crisis. Prices of almost all raw materials are increasing. Due to the rains, vegetable prices are sky high. So, if there is a price hike, it will be a result of all these factors,” he says.
What’s this crisis?
Coffee prices are soaring as climate events have impacted production in major coffee-growing regions, such as Vietnam and Brazil. India’s exports have gone up as a result.
Prices for the Arabica bean are up by approximately 40% as a result of the shortage in production of the usually cheaper robusta beans.
Industry experts believe the price will continue to rise in the foreseeable future.