2004 Cappuccino Price Survey

Brisbane's CPI - Cappuccino Price Index for takeaway cappuccino prices has increased over the past year.

The average price of a cappuccino in Brisbane rose slightly over the past 12 months, increasing by 7% to $2.54. In the same period the Australian Bureau of Statistics CPI increased by 3%.

In the central business district, the most competitive coffee retail market, it rose to an average price of $2.42.

From the outlets identified from the results of last year's survey, 48% of stores had increased prices, 32% had decreased prices and the remaining had not varied their selling price.

In the survey of 144 stores Gilkatho, a Brisbane supplier of coffee equipment and gourmet coffee recorded the advertised selling prices of espresso coffee as well as the brand of coffee sold. This information is used internally by the company to identify market trends and opportunities in the coffee market.

The survey was first carried out in 2002 when 21 different coffee brands were identified as being on sale. The latest survey conducted in January this year recorded 33 brands, an increase of 50% in two years.

Latest Results

For the past three years Gilkatho has compiled the cappuccino price index from survey results from visiting coffee outlets in 5 espresso friendly areas of Brisbane.

CPI	2004	2003	2002
All Areas	$2.54	$2.37	$2.58
Ascot	$2.81	$2.71	-
Bulimba	$2.59	$2.61	$2.79
CBD	$2.42	$2.26	$2.50
Milton	$2.84	$2.66	$2.89
West End	$2.64	$2.57	$2.58

Table 1 displays the average price of takeaway cappuccinos in each of the areas. An overall decrease in average prices was recorded in the 2003 survey which was attributed to an increase in competition as more outlets concentrated on increasing sales volume.

The number of outlets surveys has increased each year as more coffee establishments have been opened in the surveyed areas.

The pricing philosophy of espresso and cafe operators is also of interest to Gilkatho.

This table demonstrates the amount of price adjustment and competitive rivalry in the retail market place each year with 80% of operators varying their selling price in the past year.

Methodology

Each year, Gilkatho carries out a survey of Brisbane�s Cappuccino prices in order to understand the retail price of cappuccino hot beverages and the implications for Gilkatho�s business planning. This information is used to compile the Cappuccino Price Index which is published internally in March each year. Selected cappuccino society areas in Brisbane are survey by walking into each establishment and obtaining the price of three hot beverages, cappuccino, espresso and long black for both takeaway and dine-in consumption.

About Gilkatho Pty Ltd

Gilkatho is a Brisbane based supplier of coffee equipment and supplies to hotels, clubs & offices in Southeast Qld. The competitiveness in the retail coffee market ultimately determines the attractiveness of alternative ways in which consumers can obtain espresso coffee.

The increasing price of takeaway coffee continues to support Gilkatho's business plan that it is more cost effective for office based consumers to use automatic coffee equipment to produce the same quality product at a lower price as well as achieve time savings of having the beverage prepared closer to their office.

Gilkatho was established in 1996 and operates from a coffee equipment showroom in Milton.

Summary

Latest Results

Methodology

About Gilkatho Pty Ltd