Everything from the coffee beans to the milk and cheese has seen a price increase. I plan to maintain prices until the end of this month, but I'm considering posting a notice about price changes when it becomes absolutely necessary.
On the 6th, Kim Soo-hyun (36), who operates a personal café in Mapo-gu, Seoul, said, "Even with the same sales, after deducting costs for materials and supplies, labor, and rent, my net profit has decreased by about 10-20% since last month." Kim sells coffee beverages, scones, tarts, and other desserts.
He noted, "Last year, I really felt the need to raise the price of scones by 500 won, but sales dropped significantly," and added, "Since this is a neighborhood business, I have to be cautious about raising prices."
The sighs of small business owners and self-employed individuals operating personal cafés are deepening. With the won-dollar exchange rate stuck between 1460 and 1470 won, the prices of materials and supplies imported from overseas, including coffee and Kakao, are rising, putting them in double distress. There is a growing sentiment that it is becoming increasingly difficult to endure without raising prices. However, arbitrarily raising prices could impact sales, making the decision challenging.
According to the Ministry of Agriculture, Food and Rural Affairs, the price of Arabica coffee beans for the restaurant sector has risen by 85.4% compared to the previous year, reaching $7,049 (approximately 10.35 million won) per ton as of the end of 2024. The price of Robusta coffee for processing increased by 95.9% year-on-year, reaching $4,875 (approximately 716,000 won) per ton. Cocoa prices skyrocketed by 172% to $11,675 (approximately 1.714 million won) per ton.
The costs of imported dairy products such as butter, cheese, and milk used in baking and confectionery have also risen. Choi (33), who runs a café in Seodaemun-gu, Seoul, said, "Most of the materials and supplies for desserts are imported, and prices have already risen. With the exchange rate soaring, there are cases where I have to buy them for more than 50% extra." Choi noted that butter, priced at 8,000 won for 500g, has now risen to 12,000 won, and fresh cream, which was around 6,000 won per liter, has increased to the 10,000 won range.
Food and beverage companies have already implemented price increases for the new year. Dong-A Otsuka raised prices of major products such as Pocari Sweat and Demisoda by 100 won on the 1st, citing rising prices of raw and subsidiary materials and increased logistics costs. Last month, Orion raised prices on 13 products, including Choco Songi and squid peanuts, by an average of 10.6%. Haitai Confectionery also increased prices on 10 products, including Home Run Ball and Poky, by an average of 8.6%. Dongseo Food raised the release prices of instant coffee, coffee mix, and coffee beverages by an average of 8.9%.
Self-employed individuals and small business owners running cafés are pondering whether to raise prices. Due to the impact of the impeachment crisis, consumer sentiment has cooled, and raising prices could deter regular customers, making it difficult to increase prices indiscriminately. Han Young-woo (38), who operates a café in Yongsan-gu, Seoul, said, "Since this is a neighborhood business, raising prices feels burdensome," adding, "Considering the prices of materials and supplies, it would make sense to raise them, but if I raise prices needlessly and customers suddenly stop coming, I would immediately feel the impact on sales."
Among some small business owners and self-employed individuals, there are considerations to reduce the quantity of materials and supplies instead of raising prices or to only increase prices for delivery products. Park (45), the owner of a café in Jung-gu, Seoul, said, "When I asked my regular customers, I was advised that instead of raising prices, it might be better to slightly reduce the size of the desserts," adding, "While it’s nice for servings to be plentiful, since it's a café people visit after meals, having too much dessert isn't necessary." Park plans to post a notice regarding this content on the café's official social media account next month.
In the online community for self-employed individuals, "If you're suffering, you're a boss," similar "tips" are being shared. One self-employed person said, "As long as the first digits of coffee and dessert prices don't change, minor increases are understood by consumers," and added, "Increasing the volume of coffee beverages or adding more toppings to desserts and charging about 500 to 1,000 won more could be a reasonable price." Another self-employed individual mentioned, "I raised the minimum delivery amount by 1,000 won," stating, "I see it as a better choice than raising all prices."