Muzz Buss executive chairman, Warren Reynolds, predicts the cost of living will see customers continue to cut back on their takeaway coffees.
New figures from the drive-thru business Muzz Buzz reveal retail sales of coffee beans are growing significantly.
“Last year we sold more than 500 kilograms of retail coffee beans, a rise of around 50 per cent on the previous year,” he says.
“Early indications are that we’ll beat that number again this year, with more than 80 kilograms of coffee beans sold in January and February alone.
“Anecdotally we know that people are looking for areas to save money in the household budget, and clearly for some customers, they’re opting to now make their coffee at home.”
Reynolds admits coffee numbers have fallen slightly in recently months and believes it’s a sign that customers are cutting back on the number of takeaway coffees they’re buying each week.
Cost of living will see a decline in takeaway coffee sales
“Rather than buying a coffee five days a week, I think some of our customers have cut back to two or three times instead, once again to save money.”
Reynolds said the business has held its prices steady. However the cost of a cup of coffee is rising overall, he said.
He expects Muzz Buzz consumers will reduce their spending this year.
“You can’t have 10 consecutive interest rate rises and not expect people will have less money to spend. People need to save money to pay their mortgages, and so I think we’ll see more people making their own coffees and bringing their lunch from home,” he said.
“I think the retail industry as a whole is in for some tough times, and we’re going to see that reflected in consumer trends.”
- The data from Muzz Buzz also shows a switch in the customer’s coffee habits. Friday is not the busiest trading day, with sales on Saturday also rising.
- Customers are most likely to order a large latte, the data reveals.