Storm in a coffee cup

Jan 23, 2005 STI

What are you paying for when you fork out $4 or more for a cup of coffee at a gourmet joint?

By Sujin Thomas
IT'S a price storm in a coffee cup - at least to some drinkers. Why does a cuppa served in a fancy joint cost so much more than in a humble coffee shop?

Ever since chains like Coffee Club opened here in the early 1990s, the once-plain business of selling coffee has been given a booster shot, with a wider product range and ritzy, hip decors.

But these come at a price - you fork out an average of $4 to $5 for a cuppa, versus less than $1 at most coffee shops.

Even then, some players like Spinelli and The Coffee Bean & Tea Leaf have recently raised prices.

No wonder some consumers are not happy. 'It doesn't make sense when you pay $5 for a cup of coffee to bring to the office that doesn't stay warm for long,' says Mr Jeremy Seow, 26, a public relations executive.

Gabriel Gopalan, 25, a postgraduate student at Curtin University in Australia, does not believe that 'the product justifies the price'.

He thinks that he's paying a premium only for the aesthetics of the product and the ambience of the coffee joint.

Kopitiam brews are made from a cheaper bean called robusta while gourmet joints mainly use a more expensive bean called arabica.

A check on the International Coffee Organisation website shows that the price of a pound of Colombian Mild Arabica on the New York market last December was US$1.06.

Robusta beans were US$0.38 a pound.

Apart from cheaper beans, Mr Kenneth Lee, 42, a coffee shop owner in Toa Payoh, says that rentals in HDB estates and labour costs are also competitive enough to keep the costs low.

But prices have gone up further at some gourmet joints.

Spinelli recently increased the price of its large latte by 10 cents to $5.20 and medium caramel latte by 70 cents to $5.20.

Its vice-president of retailing, Mr Jason Wong, 38, says it buys only small quantities of high grade arabica beans since it has only 18 stores, compared to, say, Starbucks which has 32 joints here. Hence, it misses out on the savings of bigger bulk purchase.

But how do prices of gourmet coffee here fare against similar brews worldwide?

Starbucks sells its single espresso for $3. At other branches farther afield, it is HK$12 (S$2.52) in Hong Kong, US$1.79 (S$2.93) in New York and �1.25 (S$3.83) in London.

Still, cost is not the only factor in determining where you take your coffee.

'I think paying $4 for a cup of coffee is all right,' says financial analyst Su Teo, 24.

'It's not only the coffee you're paying for but the nice setting and place to meet up with friends and hang out.'




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THE SINGLE SHOT ESPRESSO TEST


We sent Life! reporter and former barista Sujin Thomas on a sniff-and-sip test of a single shot espresso from the five main coffee chains here to tell you how much bang you're getting for your buck


STARBUCKS COFFEE
Price: $3
Aroma: Mild and discernible only at close sniff.
Body: Watery, lacking volume.
Acidity: Fairly sour aftertaste.


SPINELLI COFFEE
Price: $2.90
Aroma: So strong it's a wake-up call.
Body: Full and round.
Aciity: The barest hint of sourness.



COFFEE CLUB
Price: $3.00
Aroma: Zaps you but is not overpowering.
Body: Fairly rounded but with a weak feel.
Acidity: Mildly sourish aftertaste.


THE COFFEE BEAN & TEA LEAF
Price: $3.20
Aroma: Faint.
Body: Thin, tastes very diluted.
Acidity: A sharp jolt of it.


THE COFFEE CONNOISSEUR (TCC)
Price (Italian espresso): $3.90
Aroma: Strong and inviting.
Body: Full and heavy feel that lingers on the tongue.
Acidity: Just a hint of it.