COFFEE lovers should brace for prices to stay high no matter what, Café Nero’s founder has warned.
Despite rising sales at his chain, CEO Gerry Ford said branches are unlikely to cut prices even if the cost of raw beans starts to cool down.
He noted “exorbitant” commodity costs that mean the days of a cheap brew are over — and warned that a cup of coffee reflects more than just beans.
Industry analysts share his gloomy outlook.
Lumina Intelligence said the average price of a coffee has already surged by 80p since 2022 to hit £4.02.
Meanwhile, the cost of Arabica beans is hovering around £3 a pound — which is double the level seen in September 2023.
Jeffrey Young, from the Allegra Group, which tracks the sector, said: “We’re two to three years away from £5 being routine for a standard coffee.
“We’ll certainly see it within the next five years, without any doubt.”
Mr Ford also blamed uncertainty caused by Donald Trump’s trade wars for costs staying high.
However, Caffè Nero still insisted it offers value compared to its rivals on the High Street.
Its lattes are typically 10p cheaper than Costa’s and 85p less than Starbucks‘.
Nero recently reported a nine per cent rise in sales in the six months to November, with UK revenues up seven per cent to a record £194million.
It now plans to open 40 new shops a year.
MOBILE PROBE
OFCOM has launched investigations into BT and Three after major summer outages disrupted mobile calls across the UK, including access to emergency services.
BT reported a software fault that hit its EE network in June and July.
The telecoms giant said it will co-operate fully and apologised for the disruption.
Three said it has engaged openly with Ofcom and will continue to co-operate.
BANK DEAL OK
HSBC’S plans to take its Hong Kong bank Hang Seng private are close to reality after winning a board committee’s approval.
The terms were ruled “fair and reasonable” and it advised shareholders to vote in favour of de-listing it from the stock market.
HSBC already owns 63 per cent of the subsidiary, and offered to pay £10.2billion for the rest of the troubled lender’s shares.
Shareholders will vote on January 8.
HOTEL PRICE INFLATION
LUXURY London hotel stays are to get more expensive as business rates jump by a quarter next year.
Savilssays the collective bill for four and five-star venues will rise from £335million to £416million in 2026-27.
The change stems from Rachel Reeves’ Budget, which introduced permanently lower rates for smaller retail, hospitality and leisure sites, funded by a levy on larger properties with a rateable value of £500,000 or more.
UK five-star room rates have risen 41 per cent since 2019, to an average of £357 a night.
