What Café Customers Really Want in 2025

Taste Still Comes First

With all the talk about price, you might expect customers to be more focused on cost than ever. But that’s not the case.

When asked what drives their decision on where to buy coffee, 73% of people ranked taste as their top priority—higher than price (65%) and location (54%).

And this wasn’t just one age group or one region, it was consistent across the board. Sure, younger customers (18-34) are more likely to care about sustainability and dietary options, while older customers (55+) focus more on convenience. But at the end of the day, taste is king.

What This Means for Cafés

Cutting costs by switching to cheaper coffee is a dangerous move. Customers might tolerate a small price increase, but they won’t tolerate bad coffee.

Consistency is everything. That means:

• Investing in barista training: even the best beans won’t save a poorly made coffee.
• Keeping equipment in top shape: calibrating regularly ensures every cup is spot-on.
• Sourcing high-quality beans: because taste is what keeps people coming back.

How Much Are Customers Willing to Pay?

We measured price sensitivity of coffee drinkers around Australia, and found that right now - most customers expect to pay up to $5.50 for a small flat white.

The research shows that while many customers will tolerate prices above $5.50, there’s a tipping point. By the time pricing hits $6.65, over 50% of people say they would no longer consider buying.

Price expectations also vary by age. Younger customers between 18-35 years old have a higher price tolerance and expect to pay up to $5.85. Meanwhile, older customers (55 and over) expect to pay 50 to 60 cents less for the same coffee.

What This Means for Cafés

For café owners, this means your target audience matters. If you’re serving a younger crowd, you may have more room to move on pricing. If your regulars are older, you’ll need to be more strategic. Price expectations also vary by state and between metro & regional areas. We break it all down in the full report.

The best approach? Small, steady price adjustments rather than big, sudden jumps. Customers will accept increases if they feel the quality matches the price.

Are Customers Cutting Back on Coffee?

No, not really.

In fact, 84% of coffee drinkers say they’ll spend the same or more on coffee in 2025. Despite rising costs, coffee remains a daily ritual that most people aren’t willing to give up. In fact, more people expect to increase their coffee spending than those who plan to cut back.

So who’s spending more? The biggest group (42%) say it’s because prices have gone up at their usual café. Others just plan to drink more coffee overall.

And what about the 16% who say they’ll cut back? The majority of them plan to drink more coffee at home. But here’s the thing: when we asked if they’d switch to a cheaper café, almost no one said yes.
That’s a clear sign that customers value quality over price.

What This Means for Cafés

Loyalty is strong. Customers aren’t actively searching for a cheaper option—they’re either sticking with their regular café or brewing at home. For café owners, this means the focus should be on keeping existing customers happy through:

• Consistent quality: because taste is still the #1 reason people stay loyal.
• Smart price adjustments: gradual increases work better than sudden spikes.

The Milk Surcharge Dilemma

Milk alternatives have never been more popular, but they’re also a major friction point for customers.

When we asked people who order milk alternatives what they think:

• 86% of people said a surcharge of 50c or less is fair.
• 31% believe alternative milks shouldn’t cost more.

This gets even more important among younger coffee drinkers, who order milk alternatives at twice the rate of older customers.

What This Means for Cafés

Some cafés are choosing to remove milk surcharges entirely and instead slightly increase the base price of all coffees.

When we ran the numbers, we found that a 15c increase in base pricing offsets a 50c surcharge. I know it’s not going to work for every café, but this could be a competitive opportunity, especially for cafés with a younger customer base.