Coffee prices rose at 17% of Australian cafes after reform — The Guardian

In Australia, 17% of cafes raised coffee prices after a ban on surcharges for credit card payments. Among the establishments that changed prices, the average increase was 50 Australian cents, or more than 10%, according to data from the online tracker Small Flat White, which covered more than 1,500 cafes. This was reported by The Guardian.

The increase exceeded the size of the abolished surcharge

From October 1, the country banned charging a surcharge for payments by credit card. It usually amounted to around 1.5% of the transaction value. The reform, led by the Reserve Bank of Australia, was introduced to make pricing more transparent for consumers and potentially reduce bank fees.

Stephen Wu, an economist at investment bank UBS, said that resilient consumer demand and high inflation may allow sellers to use the rule change as a pretext to pass broader costs on to customers. In his view, the practice of rounding prices, particularly for coffee, indicates that the increase may exceed the amount of the abolished card surcharge.

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Regulator warning and business position

The Australian Competition and Consumer Commission warned businesses that they must not mislead customers by explaining price increases solely by the surcharge ban if they are also linked to other costs. The regulator also noted that an attempt to call a surcharge another fee could be a misleading practice.

Wes Lambert, chief executive of the Restaurant & Catering Australia association, said that establishments' costs are rising rapidly, while coffee in Australia remains among the cheapest in the world. According to him, restaurants explain price increases by more expensive products, high rent, changes in pay for junior workers and industry award conditions. Business owners were also affected by four interest rate increases in 2026, which raised payments on variable-rate loans and equipment financing.

Morgan Campbell, head of policy at the consumer rights organization Choice, noted that some price increases had been expected, but consumers benefit from knowing the final price in advance. He added that it was still too early for its own study of the effects of the ban.