Cof­fee price squeeze

Hamilton Metro News - - Front Page - Ged Cann

Caf­feine ad­dicts of Hamil­ton re­joice— there’s a new cafe in town and it’s mak­ing cof­fees for $2.50.

What’s more, they aren’t charg­ing any ex­tra for take away cups, soy milk, syrup shots or an ex­tra cof­fee shot.

Cof­fix cafe is the first branch of the com­pany out­side Auck­land, and since the cafe opened its doors three weeks ago franchisee Thomas De Garn­ham said they had al­ready bro­ken even, cov­er­ing their set up costs in less than amonth.

“You can get a triple-shot soy mocha and it will $2.50,” Thomas said.

The only ex­tra charge is for al­mond milk or co­conut milk, which cost an ex­tra dol­lar ow­ing to the price of the prod­uct.

Cof­fix is com­ing up to its sec­ond birth­day and cur­rently has four kiosk out­lets in Auck­land. The cafe in Hamil­ton is the first walk-in Cof­fix es­tab­lish­ment.

“The log­i­cal move would have been Welling­ton but we thought Hamil­ton de­served some love,” Thomas said.

How do they de­liver a good cof­fee for $2.50? Thomas said once you get past the “Kiwi $5 flat white men­tal­ity” it isn’t all that hard.

“The main thing is peo­ple pay way too much for cof­fee. When we started up a lot of peo­ple told us we couldn’t do it, but you can get a cof­fee in Europe for the equiv­a­lent of a cou­ple of dol­lars.

“We roast our own cof­fee in Auck­land, but the main se­cret is we keep our over­heads re­ally low.”

These in­clude only op­er­at­ing as a take­away, mean­ing staffing costs are kept to amin­i­mum and the costs of li­cens­ing and set up costs are neg­li­gi­ble com­pared to sit-down es­tab­lish­ments.

“We are not hav­ing to wash dishes so we don’t need a grease trap or any of the other things other cafes need.”

It would seem Cof­fix al­ready has fans, with more than 50 10-cof­fee con­ces­sion cards al­ready be­ing sold to reg­u­lars.

“Stu­dents are be­gin­ning to catch on, but most of our cus­tomers come from the of­fices,” Thomas said.

If the de­mand keeps up Thomas said it wouldn’t be long be­fore Cof­fix be­gan con­sid­er­ing a sec­ond venue at the univer­sity or Te Rapa. The com­pany is also look­ing at sourc­ing biodegrad­able pack­ag­ing.

The cof­fee is fair trade and Thomas said some time this year the com­pany would be go­ing or­ganic as well. “We are look­ing at get­ting more gluten-free, dairy-free and raw op­tions for the food,” he said.

Since open­ing Thomas es­ti­mated that 70 per cent of sales had come from cof­fee while 30 per cent was from food.

The stan­dard cof­fee is served in an eight ounce cup, with the larger 12 ounce cost­ing an ex­tra dol­lar.

“The hard­est part is that peo­ple per­ceive is as— dare I say it— cheap. They see our sign and think it won’t be as good, when in fact we are on par or bet­ter than other cafes.”

The main thing is peo­ple pay way too much cof­fee.’ for THOMAS DE GARN­HAM


COF­FIX fran­chisees Thomas De Garn­ham and Adi Malal cel­e­brate break­ing even in only three weeks thanks to their $2.50 cof­fees

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