Latte Price Surpasses $5 Mark in Canada
Square data shows Canada’s coffee business economics are strong, with average national hourly wage of $17.20/hour
The average price of a latte has soared above the five dollar mark in Canada, according to data1 from technology company Square.
According to 2023 Square transaction data, a cup of coffee sold in cafes and restaurants across Canada using Square’s services is still a bargain, setting Canadians back $2.95 on average. That’s only a 1.5% rise compared to 2022, and well below the current 2.8% rate of inflation in Canada.
Square transaction data shows Canada’s coffee business remains healthy, with food and drink industry workers earning an average $17.20 an hour, up 4.5% compared to last year. That means coffee shop workers gained buying power that is keeping pace with current inflation, a positive indicator of sector growth, despite lagging behind countries such as the UK and Australia.
“Our data shows coffee culture is alive and well in Canada, where we’ve seen a 40% increase in coffee drink sales and a 28% increase in coffee shops using the Square platform by December 2023, compared to the previous year,” confirms Ara Kharazian, Research and Data Lead at Square. “Coffee shops that are experiencing spikes or slumps can take advantage of technology to help handle increased orders or drive more traffic. For example, cafes can consider using handheld devices for line-busting during peak times, and for those that are seeing a slow-down, automated marketing tools can help attract the crowds.”
Geoff Polci, an award-winning coffee roaster and owner of Stereo Coffee Roasters in Toronto, says staying open to new opportunities has been critical to the success and growth of his business. “I think that as a small business owner you need to think outside the box sometimes. There are opportunities everywhere – you just need to look out for them,” said Polci.
Additional data highlights:
- Food and beverage workers in Canada earned $17.20 an hour over the past year; up from $16.46 during the previous year. That means that a year ago, coffee shop employees would have to work 10.6 minutes to afford a latte in their own shop – compared to 10.3 minutes this year.
- The price of a standard cup of coffee rose 1.5% in Canada over the past year to an average price of $2.95 – with the sharpest peaks in BC (6%), Manitoba (3.5%) and Saskatchewan (3%).
- On the specialty coffee side, the price of a latte spiked most dramatically in the Yukon (19%), Ontario (7%), New Brunswick (6%) and BC (6%).
- Oat milk is far and away Canada’s favourite non-dairy coffee option, although nearly two-thirds of Canadians choose whole milk over other options.
Coffee prices still growing below rate of inflation in Canada
Coffee and lattes at cafes and restaurants that use Square between December 2022 and December 2023
For more information about how Square’s integrated ecosystem of commerce products can help coffee shops start, run and grow, visit squareup.com/ca/en/solutions/coffee-shop.
1Square data from payment transactions for coffee and latte purchases in Canada sold by thousands of coffee shops, cafes and restaurants between January 1, 2020, and December 31, 2023.
About Square
Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. For more information, visit www.square.ca.
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