More than half of Aussies are cutting back on cafe visits due to cost-of-living pressures, exclusive Nine poll reveals

Millions of Australians are feeling the pinch in the ongoing cost of living crisis and are being forced to cut costs wherever they can – including at their local cafes.

An exclusive Nine.com.au poll has revealed 54 per cent of the 613 respondents are going to cafes less due to cost of living pressures in 2025.

Only 29 per cent said their café visits were unaffected by cost of living pressures.

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Those who had to cut back on trips to their local café for financial reasons were vocal about the reason why.

“It used to be a pleasure to go out every now and then and have a coffee, but the prices these days are just so ridiculous,” one wrote.

Another said they’ve had to give up coffee catchups at cafes because ”the cost of living has bitten into so much of our budget”, while a third confessed they avoid dining at local cafes due to price inscreases.

“I have noticed café prices have gone up a lot since COVID-19, and cannot justify paying so much more for the same meal I would order before,” another echoed.

Several respondents wrote that they prefer to save money by making their own coffee at home rather than splashing out at a cafe these days. The remaining 17 per cent said the question didn’t apply to them.

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Economist Leith van Onselen, who previously worked at the Australian Treasury and is now Chief Economist at MacroBusiness, isn’t surprised to hear it.

“Everything is just super expensive now, and Australians just can’t afford it,” he told 9honey money.

According to van Onselen, the biggest issues are that most Australians have less disposable income (because of cost of living pressures) and it costs more than ever to run a café in Australia now (also because of the cost of living crisis).

Many Aussies are struggling to keep up with interest rates, the rental crisis, stagnant wages, skyrocketing supermarket prices, increasing energy bills, the list goes on (and on and on and on).

As a result, they don’t have the spare cash to spend on a $8 coffee or a $22 plate of bacon and eggs.

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“Everyone’s disposable incomes have gone down and one of the first things they cut back on is either the number of coffees they buy, or where they buy them from,” van Onselen said.

Café prices are also rising on the menu and behind the scenes.

Spikes in energy, rent and labour costs have made it difficult for many cafes to keep the lights on and the espresso machine running.

Even the price of coffee beans has skyrocketed, hitting its highest level since 1977.

In a bid to keep up, many owners pass the costs on to consumers.

“Cafes are facing really high costs and they’re trying to pass those costs on to the consumer through higher coffee prices and menu items,” van Onselen said.

“But going to a café is a discretionary expense and when you need to cut back, you’ll cut back on those things first.”

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He added that the oversupply of cafes in most parts of Australia has made it hard for smaller businesses to stay competitive and these are the cafes he predicts will close first as the cost of living crisis drags on.

A CreditorWatch poll released in January warned that one in six hospitality businesses are at a high risk of failing in the current economic climate and predicted almost nine per cent of food and beverage businesses will close in 2025.

With that figure in mind, it might be worth splashing out for a coffee from your favourite local café; it might not be there in 12 months’ time.

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