Major coffee chains with more than 2,600 branches blasted over ‘unaffordable’ price hikes at railway shops
GREEDY coffee giants have hiked prices by up to 30p a pop at railway stations – just over six months since they last raised them.
Consumer experts have labelled the prices “unaffordable” for many caffeine fans and likely to cause commuters to “ditch” brands.
Caffe Nero has ratcheted up the cost of a large latte at its Manchester Piccadilly branch from £3.80 last autumn to £3.90 today after a previous increase last year of 50p on 2022 prices.
Large cappuccinos have also risen from £3.80 to £3.90 – also originally priced at £3.30 two years ago.
Nero has more than 600 branches across the country, dozens of them at busy train station locations.
We found a similar story at rival chain Costa Coffee, which has more than 2,000 locations across the country and many railway spots.
Last year a large latte or cappuccino at Westminster Underground station in London (now closed) was £4.15, but this year the same drink costs £4.30 at the nearby Waterloo station branch.
That’s after a previous price hike saw the cost soar from £3.85 in 2022 to £4.15 last year.
A large Americano has also gone up from £3.60 to £3.65. The same drink was previously £3.35 in 2022.
A flat white has increased from £3.55 to £3.85 today but was just £3.30 in 2022.
A large mocha is up from £4.35 to £4.50 – having soared from a starting price of £4 in 2022.
Last night critics questioned the spiralling price rises.
Martyn James, member of The Sun Squeeze Team and independent consumer champion, said: “When coffee is hitting the average price of a pint, you know that the big brands are pricing themselves out of the market.
“We know that for many people the tipping point where a daily coffee becomes unaffordable has not only been breached but stomped all over.
“Expect to see people deserting the big brands in droves as prices increase.”
Susannah Streeter from Hargreaves Lansdown, added: “Although food inflation has fallen back, dipping to 3.7% in March it means prices are still rising on average across the board.
Are prices still rising?
CONSUMER editor Lynsey Barber explains what’s happening.
Prices have been rising fast over the past few years creating a cost of living crisis.
But this has started to ease in recent months, bringing relief to hard-pressed households.
Inflation, which is a measure of how prices have changed over the past year, is now at 3.2% – it’s lowest level in more than two and a half years.
The inflation rate hit a record high of 11.1% in October 2022.
It means prices are still rising, but not as fast as before.
This figure looks at all kinds of prices from train tickets to hair cuts, as well as items you buy off supermarket shelves.
Food inflation specifically is now at its lowest level since November 2021.
The latest data from the British Retail Consortium found food inflation slowed to 3.7%, down from 5% the month before.
Some supermarkets have even announced price cuts across hundreds of products.
But, global wholesale coffee prices have shot up recently.
That’s down to bad weather in Vietnam, which produces much of the world’s coffee beans.
Reduced supply is one reason prices can go up. So can other disruptions in supply chains, like shipping though the Red Sea.
It’s up to coffee chains whether they pass on higher wholesale prices to customers.
They may try and absorb some or all of the costs to avoid losing customers.
Rising wholesale costs could also impact the price of instance coffee on shelves.
Another way to avoid passing on higher costs is by reducing sizes.
So while some grocery costs are going down, the cost of your morning cuppa might not be quite yet.
“The price of some commodities on global markets has also been rocketing, with cocoa prices in particular reaching fresh highs in April.
“It means that sprinkle of chocolate on a cappuccino is that bit more expensive.
“Coffee chains are wasting no time in passing on these costs to travellers. Consumers are so far ring-fencing their budgets for these little treats.
“While spending on big ticket items has fallen back, commuters, shoppers and day trippers still want to indulge on their journeys and for now appear to be willing to pay higher prices.’’
Costa Coffee and Caffe Nero both confirmed their pricing was correct but declined to comment.
I comes after The Sun revealed that Costa had hiked prices by up to 13% at hospitals.
Patient groups and retail experts accused the chain of slapping a “hospital tax” on those visiting sick loved ones.
How to get free or cheap coffee
WHEN prices are on the up, bagging a freebie or two is more important than ever.
Savings can really add up, but make sure you aren’t tempted to spend more than you intended in the first place to land the free drink.
At Costa Coffee you can get a free coffee after buying ten via its loyalty scheme
You can also get an extra stamp for a reusable cup, meaning you get one quicker.
Stamps can be collected in any of the chain’s 2,800 coffee shops, as well as around 12,000 machines in petrol stations and convenience stores.
- How it works: 1 drink purchased = 1 bean, 10 beans = free drink
- Small latte cost: around £3.50, depending on location
- Number of drinks to hit target: 10
- Cost for a ‘free’ coffee: £35, or £17.50 with a reusable cup
- Reusable cup bonus: Yes, one extra bean
At Caffe Nero, if you get your coffee in a reusable cup – you’ll get a free one after buying five.
Every drink gets you a reward stamp in your Caffe Nero app. Every nine stamps is a free drink. You get an extra one if you bring your own cup.
- How it works: 1 drink purchased = 1 stamp, 9 stamps = free drink
- Small latte cost: around £3.50, depending on location
- Number of drinks to hit target: 9
- Cost for a ‘free’ coffee: £31.50
- Reusable cup bonus: Yes, one extra stamp
Rewards schemes offered by energy, mobile and telly providers like Octopus, Vodafone and Sky often offer free drinks at coffee shops or free food at places such as Greggs.
These deals can change regularly so it’s always worth checking back to see what’s available.
Usually these deals can be found on their respective apps, where you can then find a code to use when you pay.
Meanwhile, retailers Ikea and Waitrose both offer loyalty scheme customers free hot drinks.
Waitrose customers have to sign up to its myWaitrose scheme first, then buy an item in-store to claim the freebie.
Plus, you can only get free americanos, cappuccinos, lattes or teas.
Ikea customers signed up to its Ikea Family scheme can get free hot drinks between Monday and Friday.
Both retailers’ loyalty schemes can be downloaded on to your smart phone via Google Play or the Apple App Store.
At Wetherspoons you can get free refills.
Buy a £1.50 tea, coffee or hot chocolate and you can get it topped up without spending a penny. The deal is available all day, every day.