New transaction data from Square reveals that Australians are officially reaching their tipping point on coffee prices, cutting back on total cups as inflation forces local cafes to raise prices.
According to Square’s data, cup sales fell 5.9% nationwide in 2025 (vs 2024), highlighting a measurable shift in consumer behavior and daily spending habits. At the same time, average cup prices increased by 6.6% to $5.83, directly reflecting the compounding margin pressures on hospitality operators.
While higher ticket sizes have temporarily buffered total café revenue, small business owners are facing double-sided pressure: absorbing soaring input costs (from green bean imports and dairy to energy and wages) while risking customer volume loss every time they update their menu pricing.
The cost of a weekday habit
A weekday coffee habit would cost $1,516 a year at 2025 prices, $281 more than in 2021.
The average prices – and how much they’ve increased – varies significantly by state:
- Northern Territory: $6.41 (up from $5.32 in 2021)
- Victoria: $6.11 (up from $4.98 in 2021)
- Queensland: $5.95 (up from $4.78 in 2021)
- Western Australia: $5.79 (up from $4.87 in 2021)
- South Australia: $5.77 (up from $4.73 in 2021)
- Tasmania: $5.77 (up from $4.81 in 2021)
- NSW: $5.54 (up from $4.49 in 2021)
- ACT: $5.36 (up from $4.48 in 2021).
The changing menu
The data also reveals a shift towards coffee-only purchases from cafes. In 2025, 64.1% of beverage-containing cafe bills were beverage-only, and 35.9% also included food, versus 63.9% and 36.1% in 2021.
