How to price your café menu with confidence

Local coffee prices are a useful starting point. Your own costs and customers tell the rest of the story.

Start with the menu around you

Compare like with like. Check cup size, milk, extras and whether the price is a listed menu price or an actual transaction. Our coffee price snapshot compares capital-city averages and links to suburb-level data. Visit nearby cafés and record the date, so your own comparison reflects your market.

Work out the cost of each serve

For coffee, include beans, milk, cups, lids and other ingredients. For food, cost the recipe by portion, including preparation losses and packaging. Compare your menu price on a consistent GST basis with the cost figures you use, and ask your accountant how GST applies to your business.

Look beyond ingredients

The amount left after ingredients must also help cover labour, rent, utilities, equipment and other costs. Include the owner’s time in the business plan. Test how a price change might affect customer volume and total contribution instead of relying on a single target percentage.

Try changes and watch what happens

Update one item or menu section, explain the offer clearly, and follow sales, waste and customer feedback over several weeks. Your goal is a price that works for your customers and supports the café you want to run.

Useful references: business.gov.au on cash flow.