margins are definitely tight all round and consumer confidence is way down - if anything customers are becoming more discerning how they spend their money personally as a relatively new operator (at my current location at least - I've owned cafes for the past ten years and managed cafes and bars previously for longer than that), I'm noticing a slow but steady increase in coffee sales, driven in part I believe by having an owner / operator manning the machine, and by having a strong dedication to consistency and to quality control with cafes charging $4 or more (say for a double shot soy latte), then the consumer has every right to be discerning, and understandably they will look elsewhere if the product is not of a consistently excellent standard - and it is here that savvy operators can potentially prosper I for one cant compete on price, and I know that for some customers, that's the main determining factor in making a purchase, as the cost of the raw materials that we use, combined with the way we make coffee, is way too high. so i know that we've lost some potential customers to other establishments that charge less for their product but I would hope that we've more than made up for that by having a strong loyal base of regular customers, some of whom travel from far afield for their coffee, many of whom will consume two or three coffees at a single seating so yes, prices increases and low consumer confidence are hurting the industry, but this can also prove to be a blessing in disguise for those who are willing to put quality first, and who are not trying to compete on price alone p
