Viewpoint—Coffee prices perking up the ingenuity of consumers

By Erin Bury

It’s been called black gold. It’s addictive. And it’s sold at almost every street corner in Canada. It’s coffee, the beverage of night hawks and early risers everywhere. Whether it’s an executive trying to wake up before the workday, or a student up late cramming for an exam, Canadians love their coffee.

According to the Coffee Association of Canada, they drink over 15 billion cups a year, making it Canada’s most popular hot beverage. On average, coffee drinkers consume three cups of the stuff per day. And that coffee has to come from somewhere. Sure, some people brew their own at home or make it at work. But most people stop at their favourite coffee chain for a little daily pick-me-up.

And what choice they have. From Tim Hortons to Timothy’s, Second Cup to Starbucks, Canadians have no lack of options when it comes to finding their preferred brew. Some base it on taste, some on tradition, and some on convenience.

But increasingly the most important factor is price. After all, buying a large tin of ground coffee at the grocery store doesn’t cost more than $10.

This means that you are spending pennies per cup, not exactly breaking the bank. But as soon as one forays into the world of corporate coffee, the prices skyrocket.

Canadian favourite Tim Hortons is a perfect example of rising coffee prices. The chain has been raising their prices over the years, with a recent hike putting the price of a large at $1.46 plus tax. Although this is more than it used to be, it’s still cheaper than some of the more expensive specialty chains.

And no chain is pricier than Starbucks. The American chain sells coffees, lattes and other blended and whipped drinks to consumers all over the world. With many of their beverages pushing the five dollar mark, consumers are becoming increasingly agitated at the price of their favourite caffeinated beverage. After all, you could buy three cups of Tim Hortons coffee for the price of a Starbucks latte.

However, consumers are getting smart and beginning to cheat the system. Instead of willingly handing over the exorbitant amount required of them, they are coming up with ways to get the same delicious beverage they crave, but at a fraction of the price.

Their solution is so-called “ghetto lattes”, a remarkably simple invention. All a customer has to do is order a shot of espresso in a large cup, and fill it up with milk or cream at the condiment station. One microwave zap later, and you have just paid about $2 for what would usually cost double the price. One Starbucks barista estimated that five per cent of all customers use these tactics to avoid high prices.

So is it fair? Should consumers take advantage of the condiment table, cheating the system and eventually leading to higher prices for everyone else? The debate is divided. On starbucksgossip.com, one person posted their praise for these creative consumers.

“I personally applaud these people for what they’re doing. They’re smart enough to not fall for the extra charges when the free milk is sitting right there. Granted, they’re making Starbucks lose money, but does Starbucks really need that extra money? No.”

Another disagreed, saying customers should pay for what they take. “I love how people “applaud” this sort of thing when it happens at Starbucks, but if this happened at any other retail establishment it would be, well, stealing…what exactly makes this okay at Starbucks?”

Whatever the opinion, one thing is clear: unless Starbucks takes action, these drinks are only going to gain popularity among the disgruntled and dismayed customers. The word is spreading, and customers are doing their part to rebel against the pricy coffee chain.

So far the company is leaving it in the hands of the consumer. In a statement from their head office they said “we provide condiments to our customers so they can make their drinks to their liking. We trust our customers to make the choices that are right for them.”

So while they may provide milk in abundance now, they just might end up getting creamed in the end.