How Rising Costs Are Shaping Perth’s Cafe Culture

Katsu Chicken Sandwich from Timber Cafe

Perth has always loved its café culture — good coffee, chill vibes, and catching up with mates over brunch. Whether it’s a quick takeaway on the way to work or a lazy Sunday flat white with avocado toast, cafés are a big part of life here.

But lately, things have been shifting. Rising costs are hitting Perth café owners hard, and it’s starting to show in the way cafés run, what they serve, and even how we enjoy our daily coffee. So, what’s going on?

Why Everything’s Getting More Expensive

Let’s break it down. Here are some of the main reasons prices are going up:

1. Coffee Beans and Ingredients Cost More

The price of coffee beans has jumped because of things like climate change, supply issues, and higher shipping costs. Other ingredients like milk, eggs, butter, and even cooking oil have also gone up. So, making that perfect latte or brunch bowl now costs cafés a lot more than it used to.

2. Wages

Hospitality jobs rely on people. With the cost of living rising, café workers need better pay. That’s fair — but it also means café owners must increase wages to match the cost of living.

3. Rent and Bills Are Up

Overheads like electricity, gas, rent — they’ve all gone up. Cafés, especially the smaller independent ones, are feeling squeezed. Running a business was already tough, and now the bills are bigger than ever.

4. Customers Are Spending Less

With people feeling the pinch from rising rent, groceries, and fuel, they’re cutting back on non-essentials — like eating out. That means fewer café visits, smaller orders, or skipping the extras (like that slice of banana bread you used to grab on the side).

What’s Changing in Perth’s Café Scene

So, how are cafés in Perth adapting to these challenges? Here are a few things we’re starting to see:

1. Higher Prices

Yes, your flat white probably costs more now — and that avo toast might be smaller. Many cafés have had to raise prices just to stay afloat. Some are also swapping expensive ingredients for more affordable ones.

2. Smaller Menus

To cut costs and reduce waste, cafés are shrinking their menus. Instead of offering 10 types of toasties or seven sauce options, they’re focusing on a few solid choices. It’s less varied, but easier to manage.

3. Reduced Opening Hours

Some cafés are now closing earlier or skipping weekdays that are slow. It helps them save on staff and energy costs. It’s also why your favourite spot might not be open on Mondays anymore.

4. More Takeaway, Less Dine-In

Because sit-down service takes more staff and effort, some cafés are leaning more into takeaway. Quick coffee, grab-and-go pastries — it’s faster, easier, and less costly to run.

How People in Perth Are Responding

Customers aren’t just sitting back — they’re adapting too:

• Many are visiting cafés less often, or choosing cheaper options when they do.

• Some are switching from dine-in to takeaway to save a few bucks.

• Others are brewing coffee at home more often and treating café visits as a “sometimes” treat.

How are Perth Café Owners Adapting?

With rising costs shaking things up, Perth cafés are going to have to get a bit more creative with how they market themselves — and honestly, that’s not a bad thing. Here’s how we see it playing out:

• Leaning into what makes them unique:
  Instead of trying to be everything to everyone, Perth cafés will start doubling down on their specialties — whether that’s a specialty filter coffee, a killer vegan pastry, or a unique vibe you can’t find anywhere else. This kind of focus helps cafes stand out in a saturated market.

• Attracting the right customers:
  When you’re clear about what you do best, you naturally start attracting customers who genuinely value it. These are the people who keep coming back — not just because you’re nearby, but because they love what you’re about.

• Building stronger human connections:
  With less margin for error, Perth cafés will become more intentional about how they connect with customers. Small touches, warm interactions, and thoughtful community engagement will matter more than ever. At the end of the day, people remember how you made them feel.

So, What’s Next?

No one has a crystal ball, but here’s what might happen:

• Some Perth cafés may close if they can’t keep up with costs or adapt to align with their market

• Others will adapt by simplifying menus, reducing hours, or changing how they serve customers.

• We’ll see more variety — from high-end, fancy cafés to simpler, budget-friendly spots, there will be something for everyone to enjoy

• Customers will get choosier — visiting less often, but picking places that feel worth it.
  
  

Final Thoughts

Café culture in Perth isn’t going anywhere — but it is changing. Rising costs are forcing both café owners and customers to think differently. For Perth cafés, it’s about surviving without losing what makes them special. For the rest of us, it’s about supporting our favourite spots when we can, and understanding the real value behind that $6 cup of coffee.

Perth’s cafés are full of creativity, resilience, and heart. If anyone can make it through tough times with style — and good coffee — it’s them.