Richard Corney: On how much consumers should be paying for coffee

A coffee company director argues consumers should be paying more for their morning fix.

Hospitality venues in Wellington are weighing up raising prices, potentially cutting hours, or even shutting up shop as costs rise.

Flight Coffee Managing Director Richard Corney believes the current climate is worse than Covid.

He says if the price of a cup of coffee increased at the rate of operating costs - they should be charging eight dollars a cup.

The Hangar on Dixon Street is having to raise its flat white price to six dollars and ten cents - saying it can't afford not to.

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Episode Transcript

Speaker 1 (00:00):
Coffee debate. That's back what we pay. What we should
be paying, it has argued, is two different things. By
the time you deal with your inflation, you'r overheads, you declined,
but that all that stuff. It should be eight dollars
eight dollars for coffee flight coffee companies managing director Richard
Corny is whether it's Richard morning to you to Mike
A's are going very well? Indeed, what sort of company
you write your multi outlet company.

Speaker 2 (00:20):
One retail site in central Wellington's But we sell wholesale
throughout one hundred and dition cafes of this US throughout
the country.

Speaker 1 (00:28):
Right, So as the wholesale part of the equation, that's
what keeps you afloat of you with just a bloke
on a corner selling coffees, would you be gone by now?

Speaker 2 (00:35):
Yeah? Well, generally speaking, with less than we force us
in architects profit margins, it's pretty hard out there. A
lot of operators operate the cafes on a vocational basis.
Obviously there are there others that make try and make
those business elders. But similarly, the last four years as

(00:55):
a hospitality operator has been nothing like the previous team,
that's for sure.

Speaker 1 (00:59):
No, and as yours a Wellington's story for obvious reasons,
and therefore you might be hurting more than others or not.

Speaker 2 (01:06):
No, I think I think what we're experiencing is quite
consistent across the country. Definitely, Central Auckland, the inner city
has with the city rail link and the current organ
transport works is hurting as much as part of Wellington
and other major things is we're government was based. So

(01:26):
certainly not a Wellington unique situation.

Speaker 1 (01:30):
Right if you put it at eight bucks? What do
you reckon would happen?

Speaker 2 (01:35):
Oh? Yeah, well the market would react, wouldn't it. No,
it's I don't think dollars are sustainable. I think I
think what's important for people to understand is that if
if if cup coffee cup pricing kept up with in
our example of our rings increases and other overhead increases

(01:55):
over the last felve years relative to what we were
charging back in twenty twelve when we are opened, it
would be eight dollars ninety a cup. Wow. And you
know I'm not saying that people should be paying eight
dollars nine yar cup. I think what's important is people
understand that, you know, a cup of coffee is greater
than the some of its past and and you know,

(02:16):
like we've had one hundred and thirty four percent increase
in our rent since twenty twelve, paying one hundred and
sixty percent more in wages since twenty twelve, relatively speaking.
So yeah, it's really the value is got to come
from somewhere, and fe operators, hospitality operators are certainly needing

(02:36):
to pass on those costs to you know, to have
a business.

Speaker 1 (02:40):
And at all, Yeah, you're trapped. It's the problem, aren't you, Richard.
At the end of the day, you cannot pass on
the costs that have been thrust upon you. Appreciate your insight,
Richard Corney, who's Flight Coffee company? And I think he
was was that a trainer a plane? Difficult to tell
on the background, but nevertheless he's on the move. For
more from The Mic Asking Breakfast, listen live to new
Talk set Be from six am weekdays, or follow the

(03:03):
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