With the cost of doing business rising across the board, many cafe owners are asking the same question: how do we raise prices without losing customers?

Between rising ingredient costs, wage and super increases, and power bills that feel like they're caffeinated too, the pressure on your margins is real. 

And at some point, we all face the same question:

Do I put prices up? Or do I just keep eating the costs and hope for the best?

The truth is that holding off on price increases for too long isn’t sustainable. If you want to stay in business, keep offering the same great quality, and still have a life outside of work, then the answer is clear — it’s time to raise your prices.

Here’s how to do it the right way — with confidence, transparency, and a little bit of strategy.

 

Before you implement a price increase, here’s something worth knowing:

Price is not the number one reason people choose your cafe.
According to recent data, taste is.

In other words, quality matters more than pricing when it comes to winning customer loyalty. 

This means when costs rise — and they have — the smarter move isn’t to cut corners to keep prices the same. It’s to double down on the reason people choose you in the first place: great coffee, great food, and a consistently excellent experience.

So if you’re faced with the decision:

• Decrease quality to maintain current pricing, or

• Raise prices to sustain (or improve) quality
   

The data says customers will back you if you choose quality.

Even though it's scary to take action, a race to the bottom is not the answer; you cannot win that way. 

The good news? Raising prices doesn’t have to feel scary — or risky. Done right, it can strengthen your business, retain your regulars, and earn even more respect from your local community.

Here’s how.

1. Bring Your Team In First

Before you even update the till, sit down with your staff and explain the “why.” Rising supplier costs. Rent increases. Sourcing quality ingredients that haven’t cut corners. Your team should understand the full picture so they can back the decision and explain it to customers without awkwardness.

When your staff feel confident, your customers do too.

2. Frame the Price Increase Properly

When communicating a price rise — whether to your team or your community — framing is everything.

Here’s the reality:

“We had a choice. Decrease the quality of what we offer so we could cut costs and keep prices the same…Or maintain our standards, continue sourcing great ingredients and coffee, and raise prices slightly so we can do this sustainably.”

Most people will get it. They just want honesty and clarity.

3. Prep Staff with What to Say

A few well-worded phrases can go a long way. Try:

• “We’re committed to keeping things great here, and this helps us do that.”
  
  

• “It’s a small increase, but it helps us keep offering the quality you love.”
  
  

• “We’ve held off as long as we could, but rising costs across the board have made this necessary.”
  
  

Make sure staff know it’s okay to empathise with customers — but still stay proud of the value your café provides.

4. Give Your Customers a Heads-Up

Don't let your new prices catch people off guard.

Put up a friendly sign at the counter a week or two in advance. Keep it simple and transparent — explain what's happening, why, and when.

This advance notice builds trust and gives people time to process the change, rather than react emotionally in the moment.

5. Make it a Conversation, Not a Surprise

Encourage staff to chat about the price changes in a natural, friendly way — not just when someone complains. A proactive, human conversation ("Hey, just a heads up — prices are changing next week, happy to chat about it!") is always better than silence.

6. Sweeten the Deal

Consider running a small special when the new prices hit. Something like:

• A limited-time treat
  
• A discounted item
  
• A “thank you” free coffee card
  
  

It’s not about offsetting the increase. It’s about showing your customers you still want to bring joy to their day and offer value where you can.

Final Thoughts

If you're a cafe owner, here's the thing nobody tells you enough: You deserve to make a living.

You work hard. You create a space people love. You buy great ingredients. You support your team. And if you constantly eat rising costs, your business will suffer — and so will you.

Don’t be afraid of a price rise. Be prepared. Be honest. And be proud of the experience and quality you offer your community every single day.

 

 

Want support planning your next price change?
 

Old Quarter works closely with our wholesale partners to navigate decisions like this — because sustainability isn’t just about sourcing, it’s about making sure your cafe survives and thrives too.

Learn more about partnering with Old Quarter.