The price of coffee is set to increase in Ireland again in 2025.

The global commodity price of coffee is the least of Ireland’s worries in regards to coffee, one coffee expert has said.

On Moncrieff, Dublin Barista School CEO James McCormack said the “ongoing overheads external to coffee” are what is causing this hike in coffee prices.

“The global commodity price of coffee has gone up so much that it's going to have a huge knock on effect to the price of a cup of coffee in a coffee shop this year, next year, and probably on an ongoing basis,” he said.

“From my perspective, it's not the main issue.

“Seeing huge energy price increases, seeing minimum wage going up in January as well as all of the other raw materials that we use in the process, milk has gone up, packaging costs have gone up.

“Absolutely every overhead that you can think of for every hospitality business has increased, particularly since covid.”

Mr McCormack also said the new hybrid work week, where not that many office workers are coming in to the city centres every day, is also having an effect.

“There's two days of your five day week, or if you're open seven days a week, there's two of your seven, that are basically decimated because there's no footfall on the streets anymore,” he said.

"Customer relationship"

The coffee expert said these changes aren’t just affecting coffee shops - “it's all hospitality”.

“It's quite devastating and I think the reality of it is, and the reality of every business is, that the hospitality businesses that are offering the best customer relationship are the ones that are going to win,” Mr McCormack said.

“We're in the business of training baristas and training people in how to engage with their customers, not just make an amazing cup of coffee, but also to be that that front line relationship builder with your customers.

“Ultimately, historically, [that is] what customers always come back with come back to in their coffee shop.

“I don't think customers mind paying a little bit extra once they're getting that great service and that great cup of coffee at the end.”

Oversaturation

Mr McCormack agreed with the point that there is an oversaturation of coffee shops in Ireland.

“Unfortunately there is and that's why you're seeing so many closures at the moment,” he said.

Mr McCormack also said that the “at home barista” sector has grown exponentially over the past few years.

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A barista prepares a coffee, 8-4-17. Image: Gordon Scammell / Alamy