As the cost of living continues to rise, more Australians are turning to service stations and convenience stores for their daily coffee fix, seeking more affordable options amidst financial pressures. Recent data reveals a notable shift in consumer behavior, with major retailers like 7-Eleven and Reddy Express reporting a significant surge in coffee sales, indicating a growing trend.
Reddy Express, formerly Coles Express, has witnessed a rise in demand for its coffee offerings, emphasizing the variety and quality available to customers. Tracy Hammon of Reddy Express highlights the diverse options available, ranging from cappuccinos to lattes, catering to varying preferences and tastes, unlike the traditional ‘one size fits all’ approach.
With a starting price as low as $2, a cup of coffee from a service station presents a cost-effective alternative, costing less than half the price of a similar brew from a local café. This significant price differential has led to a substantial increase in sales at service stations, with consumers potentially saving over $1000 annually by opting for these more budget-friendly options.
However, this shift in consumer behavior has not been without consequences for the café industry, as café profits experienced a decline of 1.8% in the past year. More than 700 cafés across the country have been forced to shut down due to the changing preferences of consumers seeking more affordable coffee alternatives.
In response to this trend, café owners are reminding the public of the value of supporting local businesses and the unique experiences they offer beyond just a cup of coffee. Tony Roussos of Degraves Espresso emphasizes the community-building aspect of supporting smaller local businesses, highlighting the importance of sustaining these establishments for the overall economic health of the community.
Despite the growing popularity of service station coffee and the decline in café patronage, instant coffee remains the dominant player in the market, holding a substantial 42% market share. This enduring preference for instant coffee underscores the diverse range of choices available to consumers, reflecting the evolving landscape of the coffee industry in response to changing economic conditions.
As consumers navigate the challenges of the cost of living crisis, their coffee consumption habits reflect broader shifts in spending patterns and preferences. The rise of service station coffee as a more affordable option highlights the adaptability of consumers in the face of financial pressures, reshaping the traditional café culture and driving changes in the coffee market.
Amidst these changes, the coffee industry continues to evolve, with businesses exploring innovative strategies to cater to changing consumer needs and preferences. The intersection of the cost of living crisis and coffee consumption patterns underscores the dynamic nature of consumer behavior, shaping the future of the coffee industry in Australia.
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