Your coffee cup costs more than the actual coffee

23 September 2013

Perhaps you’re drinking a latte right now, trying to force your jelly brain to wake up and function properly. WELL, if you’re drinking from a takeaway cup, it turns out that the paper and cardboard costs twice as much as the coffee beans.
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Analysts at Allegra Strategies, who had nothing better to do at the time, have provided a breakdown of the cost of our daily cup of joe, and found that the coffee in a £2.20 take away cappuccino costs just 8p.

However, all the bells and whistles – the cardboard thermal sleeve, the lid with the hole in it and the stirrer, cost 16p. But before you go into your local Starbucks with 8p and start throwing your weight around, almost a quarter of the price goes to the scowling, resentful baristas and 37p goes to the government for VAT. Coffee chains are left with just 13% profit.

Jeffery Young of Allegra Strategies said: ‘I think customers are getting extremely good value. People spend a lot of time in coffee shops and they aren’t paying for that time other than a price of a cup of coffee.’

7 comments

  • Darius
    What's news? Any packaging company or print buyer could have told you that, and no analysts required. Same goes for cornflakes, bottled water, even Scotch.
  • jim
    ^^^^^ someone's had too much coffee.
  • shiftynifty
    Tumbleweed..blowing...as I sip my decaffe latte
  • The G.
    How are coffee chains left with only 13% when according to what you have copy n pasted a cup costs £2.20 then "almost a quarter of the price goes to the scowling, resentful baristas", lets say 50p, leaving £1.70. Then there is the 37p to take off for VAT, leaving £1.33. Take off the 24p for the cardboard thermal sleeve, the lid with the hole in it, the stirrer and the coffee which leaves £1.09. By my reckoning that is nearly 50% profit. Yet another completely crap and nonsense article from Lucy.
  • Chris
    Oh, but of course there are no other costs, such as milk, condiments, rent, utilities, business rates. 13% profit, not 13% after wages and raw materials.
  • Desmond
    Boom boom boom
  • Dick
    Cleaning up the piss on the floor of the toilet. That was me.

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