1 00:00:00,400 --> 00:00:04,880 Speaker 1: Jersey and Amanda jam Nation. How much would you pay 2 00:00:04,920 --> 00:00:06,600 Speaker 1: for a cup of coffee at the Moment's probably four 3 00:00:06,680 --> 00:00:09,520 Speaker 1: fifty five dollars depending where you get it. And Australians 4 00:00:09,520 --> 00:00:11,840 Speaker 1: are obsessed with their coffee, as we know, we love it. 5 00:00:11,840 --> 00:00:14,480 Speaker 2: It's a new smokeout and you go overseas you can't 6 00:00:14,480 --> 00:00:15,480 Speaker 2: get a good coffee. 7 00:00:15,840 --> 00:00:17,560 Speaker 1: Well, I'm not much of a coffee drinker. I'll have 8 00:00:17,600 --> 00:00:20,599 Speaker 1: a really weak instant coffee, but a shop coffee is 9 00:00:20,640 --> 00:00:22,600 Speaker 1: too strong for me. So that's why I'm a tea 10 00:00:22,680 --> 00:00:26,400 Speaker 1: drinker pretty much. But looking at this, I wonder how 11 00:00:26,440 --> 00:00:28,639 Speaker 1: much Australians will pay for a cup a cup of 12 00:00:28,640 --> 00:00:32,280 Speaker 1: coffee because according to Richard Forbes, the chief executive of 13 00:00:32,320 --> 00:00:35,440 Speaker 1: Independent Food Distributions Australia, don't you know we could be 14 00:00:36,520 --> 00:00:38,760 Speaker 1: at some point getting a ten dollar cup of coffee. 15 00:00:39,280 --> 00:00:43,600 Speaker 1: Because this is the problem is that, well, the water's 16 00:00:43,640 --> 00:00:46,160 Speaker 1: gone up, so the coffee shop owners have to pay 17 00:00:46,200 --> 00:00:50,000 Speaker 1: more in wages, gas, electricity, food groups, all of that. 18 00:00:50,040 --> 00:00:52,320 Speaker 1: There's been a thirty percent increase in the cost of 19 00:00:52,360 --> 00:00:56,400 Speaker 1: food over the last three years, energy bills, all of 20 00:00:56,400 --> 00:01:00,280 Speaker 1: that stuff. This is what's alarming is that forty three 21 00:01:00,360 --> 00:01:04,160 Speaker 1: percent of small businesses made no profit in twenty twenty three. 22 00:01:04,880 --> 00:01:09,160 Speaker 1: Huge rate of insolvency in that industry, which makes it 23 00:01:09,200 --> 00:01:12,200 Speaker 1: really hard, doesn't it as to what do you do? Because, 24 00:01:12,440 --> 00:01:15,520 Speaker 1: as he says, coffees should be about eight dollars or 25 00:01:15,520 --> 00:01:18,959 Speaker 1: eight dollars fifty, but we're stuck at five five fifty, right, 26 00:01:19,080 --> 00:01:21,520 Speaker 1: because no one's going to pay more than that. You 27 00:01:21,560 --> 00:01:24,000 Speaker 1: see TikTokers all the time saying, look how much I've 28 00:01:24,040 --> 00:01:25,880 Speaker 1: paid for a small piece of toast and a job, 29 00:01:26,520 --> 00:01:30,679 Speaker 1: and yet why should the business absorb those costs? They can't, 30 00:01:30,840 --> 00:01:32,240 Speaker 1: and therefore businesses fail. 31 00:01:32,319 --> 00:01:35,240 Speaker 2: I guess it's following the path of beer. Remember the 32 00:01:35,280 --> 00:01:38,240 Speaker 2: ten dollar beer that's probably abou as much as a beer, 33 00:01:38,360 --> 00:01:42,720 Speaker 2: well a beer used It hit ten dollars about two 34 00:01:42,760 --> 00:01:45,199 Speaker 2: or three years ago at places like the Snow. You'd 35 00:01:45,240 --> 00:01:47,520 Speaker 2: go to the snow and you thought, well, I'm in 36 00:01:47,560 --> 00:01:50,120 Speaker 2: the snow. Of course it's expensive for a beer. I 37 00:01:50,160 --> 00:01:52,520 Speaker 2: was talking to the barkeep there about the ten dollar beer, 38 00:01:52,680 --> 00:01:54,080 Speaker 2: and he said, it's going to hit it's going to 39 00:01:54,160 --> 00:01:56,760 Speaker 2: hit your areas soon. The ten dollar beer. At that 40 00:01:56,880 --> 00:01:59,120 Speaker 2: time it was about eight bucks fifty or something. Now 41 00:01:59,120 --> 00:02:01,680 Speaker 2: it's ten dollars. The other day I went to get 42 00:02:02,040 --> 00:02:05,160 Speaker 2: a beer and it's up to twelve dollars fifty. Well, 43 00:02:05,240 --> 00:02:08,519 Speaker 2: now we just accept that. Well, but should a beer 44 00:02:08,639 --> 00:02:09,880 Speaker 2: used to get a six back for it? 45 00:02:10,320 --> 00:02:12,480 Speaker 1: Should we not accept it? I mean, it's cost of 46 00:02:12,560 --> 00:02:14,359 Speaker 1: living isn't just for us, It's for the people who 47 00:02:14,440 --> 00:02:17,480 Speaker 1: providing that stuff as well. It's not just price gouging 48 00:02:17,600 --> 00:02:19,919 Speaker 1: or hey, how come this prize is going up? Everything's 49 00:02:19,919 --> 00:02:23,120 Speaker 1: getting more expensive, lives, cosey lives for the people who 50 00:02:23,160 --> 00:02:25,920 Speaker 1: are providing it as well. So be interesting to know 51 00:02:26,040 --> 00:02:28,440 Speaker 1: would you pay ten dollars for coffee a lot? It's 52 00:02:28,480 --> 00:02:30,920 Speaker 1: like petrol. Petrol just goes up and up and up, 53 00:02:30,919 --> 00:02:32,519 Speaker 1: and we go, okay, yeah, we need our petrol. 54 00:02:32,600 --> 00:02:34,560 Speaker 2: Petrol's good at the moment. If you noticed, it's it's 55 00:02:34,600 --> 00:02:35,000 Speaker 2: quite check. 56 00:02:35,040 --> 00:02:37,720 Speaker 1: It never comes completely down, does it. But having said that, 57 00:02:37,840 --> 00:02:40,320 Speaker 1: will people see coffee as the same kind of commodity? 58 00:02:40,520 --> 00:02:42,639 Speaker 1: I have to have my coffee for a while there. 59 00:02:42,639 --> 00:02:45,720 Speaker 1: My dad worked in financial services and then he bought 60 00:02:45,919 --> 00:02:48,959 Speaker 1: a coffee shop in Brisbane years ago, and he was 61 00:02:49,000 --> 00:02:51,880 Speaker 1: probably in his sixties when he did it. And the 62 00:02:52,440 --> 00:02:55,400 Speaker 1: margins are so narrow, and if there's a coffee shop 63 00:02:55,440 --> 00:02:58,320 Speaker 1: that opens within walking distance of yours, and it sells 64 00:02:58,360 --> 00:03:01,920 Speaker 1: something that's ten cents cheaper than yours, people will not 65 00:03:02,080 --> 00:03:04,720 Speaker 1: buy yours. He used to have people who'd come in 66 00:03:04,760 --> 00:03:06,400 Speaker 1: with the old people who come in with their own 67 00:03:06,440 --> 00:03:09,280 Speaker 1: tea bag. So Dad had to pay staff, had to 68 00:03:09,440 --> 00:03:12,200 Speaker 1: wash the cups, all of that sort of stuff. But 69 00:03:12,240 --> 00:03:14,760 Speaker 1: that's what you do for customer loyalty, or else you 70 00:03:14,800 --> 00:03:16,200 Speaker 1: don't keep them. It's hard. 71 00:03:16,360 --> 00:03:18,080 Speaker 2: What do you do. You make your own coffee, You 72 00:03:18,080 --> 00:03:21,120 Speaker 2: start making homebrew, I've been down that path. Make your 73 00:03:21,160 --> 00:03:21,760 Speaker 2: own petrol. 74 00:03:24,760 --> 00:03:25,959 Speaker 1: Maybe that's the next step.