The price of a morning pick-me-up is set to increase across the Emirates as the profits of coffee shops continue to be ground down by rising bean prices.
"It looks like in the next two quarters there will be a price increase because we cannot suffer these costs increases any more," said Caner Gursoy, the operations manager for Brook Foods, the franchisee for Gloria Jean's in the UAE.
Mr Gursoy said the price of Arabica beans had increased at a rate of about 16 per cent every six months for the past three years and that, reluctantly, some of this increase would now have to be passed on to customers.
The price of a basket of assorted coffee beans has risen 35 per cent in the past year, according to the International Coffee Organisation.
Coffee and beverage sales make up about 35 per cent of Dunkin' Donuts business in the UAE, and despite having the buying power of a global brand, its coffee costs have increased 50 per cent in the past two years, said David Rogers, the general manager for the chain in the UAE.
"We are considering a price rise," Mr Rogers said. "The last two years have been zero or negative growth, but the biggest problem is cost increases. It's really hurting."
Dunkin' Donuts has 60 outlets across the Emirates and has enjoyed 12 per cent growth in sales so far this year compared with the same period last year.
But this growth has not translated to profits and the company lost money in June, July and last month because of rising costs.
Both Cinnabon and Seattle's Best Coffee have already increased prices by Dh1 per cup and now offer four sizes of cups compared with two previously.
"With the increase in coffee bean prices, we are trying to offer smaller and bigger sizes so people can buy coffee and we can service all types of needs," said Marwan Kandeel, the senior brand manager for Cravia, which manages Cinnabon and Seattle's Best Coffee in the UAE. "Maybe you have to pay a little bit more or take a smaller coffee."
Mr Kandeel said the cost of the company's coffee beans had risen 80 per cent in the past year and 40 per cent in the past two months as suppliers raise prices.
Gloria Jean's, Dunkin' Donuts and Krispy Kremes all said they would not change their cup sizes to manage rising costs.
"I believe that changing the cup size and recipes is not being honest with the customer," Mr Gursoy said. "We do not want to go down that route."
Prices could start to improve soon though, with production of Arabica beans in Brazil, the world's largest coffee grower, forecast to increase 37 per cent next year.
rjones@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The biog
Prefers vegetables and fish to meat and would choose salad over pizza
Walks daily as part of regular exercise routine
France is her favourite country to visit
Has written books and manuals on women’s education, first aid and health for the family
Family: Husband, three sons and a daughter
Fathiya Nadhari's instructions to her children was to give back to the country
The children worked as young volunteers in social, education and health campaigns
Her motto is to never stop working for the country
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Naga
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Match info
Uefa Champions League Group F
Manchester City v Hoffenheim, midnight (Wednesday, UAE)
BUNDESLIGA FIXTURES
(All games 4-3pm kick UAE time) Bayern Munich v Augsburg, Borussia Dortmund v Bayer Leverkusen, Hoffenheim v Hertha Berlin, Wolfsburg v Mainz , Eintracht Frankfurt v Freiburg, Union Berlin v RB Leipzig, Cologne v Schalke , Werder Bremen v Borussia Monchengladbach, Stuttgart v Arminia Bielefeld
SPECS
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
Look north
BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.
Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
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