My Coffee station is the main food provider on our college campus. They provide a range of hot and cold beverages. Not only do they provide drinks, but they also provide food ranging from chips, burgers, and pain au chocolates. However, there is a significant disparity in prices since the last academic year. I endeavoured to find out the reasoning behind this, and if the cost-of-living crisis has played a factor in this.
The price of a hot chocolate in 2022 was a total of £1.75. On the contrary, one hot chocolate now costs £1.95, the price inflating by 20 pence. This increase may be minor, but it still sparked some controversy from students and staff at college. I interviewed a group of year 13 students about the change in price; They said: “I think the price going up is wrong, we’re in a cost-of-living crisis at the moment and most people probably can’t afford to spend £1.95 on a hot chocolate or a coffee.” In addition to this. I asked a few year 12 students for their perspectives after showing them the price increase. From this, I concluded that the vast majority of students agreed with this statement and believe that the price should be lowered back down to £1.75.
Once compiling a perspective from students, I interviewed the staff behind My Coffee Station to find the reasoning behind the inflation in price from a business perspective. I learnt that the reason for the price increase is to help gain more money to aid in paying for rising energy costs, and the cost of raw coffee, as resources needed for a coffee business has doubled over the last year. This means that selling coffees, hot chocolates, etcetera, at the original price of £1.75 would not generate enough money to meet the ever-growing cost for the needed resources, equipment and energy to run equipment.
Taking everything into account, the cost-of-living crisis and rise in energy costs has not only affected people but businesses too. This means that prices of products must increase to meet specific standards but must take into consideration the economic hardships their customers face as not to lose their patronage.