Perth’s burgeoning cafe culture could be set for a major hit unless customers better understand and accept the economic pressures on suburban coffee shops, according to some baristas in WA.

With consumers baulking at the cost of coffee, Perth café owner Hadley Swan is worried about the industry he loves.

Continuous inflation and cost-of-living pressures have put the price of the morning caffeine boost under the spotlight.

Mr Swan, owner of Dropinz Coffee in Mullaloo, says consumers should understand these financial pressures impact businesses too.

“It’s about trying to educate the public that to make that $5.50 cup of coffee, a lot goes into it,” he says.

Mr Swan says while labour, imports, equipment, and renting costs continue to drain funds, the selling price for coffee has remained relatively steady, leading to a decrease in profit margins.

Thomas Enright, coffee roaster at Leftfield Coffee Roasters, says cafes are reluctant to increase prices for fear of losing loyal customers.

“Input costs such as fertiliser, transport and packaging have been skyrocketing, making it more expensive to import coffee. However, cups of coffee at cafes have only risen by 80 cents maximum,” he says.

These prices triggered debate in parliament this week, with Labor MP Steve Georganas accusing major supermarkets of price-gouging for doubling the price of tins of Nescafe coffee.

But cafe owners and roasters of high-quality brews insist their coffee remains affordable.

“People are expecting top-quality products to remain at low prices,” Mr Enright says.

Mr Swan compares these unrealistic expectations to what consumers are willing to pay for alcoholic beverages.

“Your average beer out of a keg cost around $2.50 and is sold for $12 for a profit margin of 500 per cent to 600 per cent. Compare that to a coffee with a profit margin of about 140 per cent,” he says.

“If you wanted to sell [a coffee] for what it’s worth, it should be along the same lines as a beer.”

Mr Swan and Mr Enright say unless customers are willing to start paying more for their coffee, they may see their local cafés disappear.

“At the moment the way the rates are going…it’s not sustainable to keep a small business open.”