Cafes in Perth benefiting from tourism and trade
Western Australia's successful tourism and export markets are having a positive impact on cafes in Perth, according to the latest research.
The Gilkatho Cappuccino Price Index revealed Perth is the most expensive place in the country to purchase a cup of coffee due to holidaymakers and bustling trading activity bumping up custom.
According to the index, the average coffee costs $3.94 in Perth, compared with $3.34 in Sydney, where cafes are the cheapest. Hobart and Brisbane are joint second in terms of high prices at $3.61 a cup. Melbourne, while boasting average prices of just $3.43, has seen the largest increase over the years due to its burgeoning coffee culture.
Wayne Fowler, Gilkatho managing director, said residents in the Victorian capital are willing to pay more for a quality cup of coffee, resulting in a 9 per cent rise in prices over the last four years.
"This includes using premium milk, boutique coffee providers and cafe atmosphere," he explained.
Sydney, despite having the most expensive living costs in Australia, boasted the cheapest coffee. Mr Fowler said this is due to the high level of competitors fighting over inner-city customers.
"The relative low increase but consistently high price of coffee in Perth, on the other hand, can be seen as a direct result of the active export and tourism markets, which helps justify higher prices," he added.
Coffee shop owners hoping to capitalise on the relative stability of the West Australian capital's cafe scene should invest in comprehensive cafe insurance in Perth.
While business may be booming, owners should always be prepared for circumstances outside of their control that could result in an expensive claim. Whether it's public liability, employee fraud, breakdown of equipment or stock insurance, Bruce Insurance can help you to build a policy that is specifically tailored to your needs.