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Switching to cheaper coffee might feel like a smart way to save money, but the reality is very different. While you might shave a few dollars off your weekly order, the long-term impact can be devastating for your café’s reputation and profitability.
Our consumer research, What Café Customers Want, shows that taste is the number one priority for customers, well ahead of price. When quality drops, customers rarely complain...they simply stop coming back.
Losing even 2 or 3 regulars can easily wipe out any savings you hoped to make.
The Hidden Costs Explained
Lost Customers
There’s no way around it, cheaper coffee almost always means compromised taste.
To offer a lower price per kg, roasters either need to source lower quality coffee, cut back on equipment and training…or both. For cafes, that’s a risky move, because quality is the number 1 priority for customers.
In our recent consumer research, when asked what drives their decision on where to buy coffee, 73% of people ranked taste as their top priority, higher than price (65%) and location (54%). And this wasn’t just one age group, or one part of Australia, it was consistent across the board.
Reduced Service & Support
Low-cost suppliers often cut corners on barista training, technical support, and emergency coffee runs.
When staff don’t have access to hands-on training, standards drop and customers taste the difference.
Not only that, but when equipment isn’t maintained, you risk breakdowns, which can means hundreds or thousands of dollars of lost sales waiting for emergency repairs.
Impact on Brand Reputation
For a cafe business, your coffee is your brand. Poor quality doesn’t just affect taste, it affects word-of-mouth, reviews, and loyalty.
Cutting back on coffee not only affects existing customers, it affects your ability to grow into the future.
Crunching the Numbers
Here’s an example of how the hidden costs can impact profit: Switching to coffee that’s $5/kg cheaper might save you $50 or $100 a week. But if you lose just 2-3 regular customers a day, that’s over $5,000 in lost revenue annually. If you also add the cost of service and support, then you end up losing over $2000 in profit annually.
Use our Hidden Cost Calculator to see how this plays out for your café.
Why Quality Coffee is Smart Business
Investing in quality coffee isn’t just about taste, it’s about building a sustainable, profitable business.
At Seven Miles, we back our coffee with:
- Expert training for your team
- Local support with emergency coffee runs and technical help
- Consistent quality from bag to cup
Because behind every great coffee is a partner who cares about your success.
Ready to talk wholesale coffee?
Join 700+ cafés already backed by our coffee, training, and local support.
Hidden Cost Calculator FAQs
How are hidden costs calculated?
Hidden costs are based on lost coffee sales from customers who stop buying due to lower quality, resulting in lost sales and profit over a year. Depending on the option you choose, the calculator also factors in the hidden cost of service and support that many lower cost coffee suppliers don't include.
How is gross profit calculated?
The calculator uses your inputs: price per cup, kilograms of coffee per week, and daily cups
sold to calculate annual gross profit . To keep the calculation simple, the following assumptions are used:
- Based on a 12oz dine-in flat white
- Double shot of espresso, based on 22g of ground coffee
- A milk cost of $2 per litre
What’s included in the service / support calculation?
In the calculator, when the service/support option is unticked, an assumed cost of
$2000 per annum is added to cover technician visits as well as parts and
maintenance. Actual costs vary based on the age of equipment, how often it is
serviced, local water quality and a range of other factors.
Does the calculator include GST?
Input price per cup includes GST, but revenue and margins are calculated excluding GST.
How does coffee quality affect customer retention?
High-quality coffee drives loyalty and repeat business, while poor quality leads to churn and negative word-of-mouth.
How much does wholesale coffee cost?
Wholesale coffee pricing depends on several factors: the volume you purchase, the blend of coffee you choose, as well as equipment and maintenance costs. For a general guide, read our article on wholesale coffee pricing. For specific pricing, fill in the form on our wholesale coffee page and our local team will put together a quote for your business.