In the UK, businesses are experiencing rising cost pressures across hospitality. Labour costs, business rates, coffee pricing volatility and increases in other key ingredients are all contributing to tighter margins and less flexibility within already stretched operating models.
When overheads rise across the board, pricing becomes one of the few levers that can materially improve performance. Businesses looking to protect margin and drive sustainable profit in 2026 are therefore re-evaluating their menus and drink pricing strategies with greater scrutiny.In 2026, a standard latte in the UK typically sits somewhere between £2.80 and £4.80, depending on format, location and positioning. That spread alone highlights an important point: there is no single “correct” price. The right number depends on cost base, business model and the role coffee plays within the wider operation.
In this article, we’ll explore typical coffee pricing in 2026, what it actually costs to serve a cup, and how different business models should approach adjusting their prices.
2026 Coffee Prices from Different Businesses
Although the national range for a latte in 2026 sits broadly between £2.80 and £4.80, pricing varies significantly by business type.
Variation is caused by different levels of competition across industries, customer expectations, service structures and their associated costs, and the purpose coffee serves within a business. For example, a high volume specialty coffee shop with skilled baristas will be highly dependent on making a profit within the price of their coffee, whilst more convenience-led offerings like grab and go machines will have less of an impact on the success of the business.
With that in mind, typical 2026 UK latte pricing typical falls within these ranges:
- Basic independent & local cafés: £2.80 – £3.80
- Independent specialty coffee shops: £3.60 – £4.80+
- High street chains: £3.80 – £4.80
- Convenience (vending, grab-and-go machines): £1.80 – £3.00
- In-store cafés (garden centres, retail stores): £3.20 – £4.20
Key factors that influence where a business actually sits depends on a huge number of factors, with location having a great impact due to its effect on costs such as rent, labour costs, business rates and utilities, and competition.
How to Set Your Coffee Prices in 2026
There is no universal number that works for every business when deciding the price for their cup of coffee. The right price sits at the intersection of cost, margin, positioning and market reality.
A structured approach makes the decision far more commercial and far less emotional.
Start with your costs
To fully understand the price your coffee needs to be set at, you must get to grips with your costs. The price for a cup of coffee has to cover so much more than just the cost of the milk and the beans.
Costs to consider include coffee, milk, cups and lids, labour time, utilities, equipment financing, waste, VAT, amongst many others. A latte may only contain 60 to 80 pence worth of raw ingredients, but once these additional costs are factored in, the real cost per cup is significantly higher.
Aim for target margin
Once cost per cup is clear, margin becomes the next decision.
Many operators aim for a gross margin on hot drinks of 65–75%, depending on format. High-volume, automated models may operate slightly differently. Premium specialty shops or boutique outlets may justify higher margins due to positioning.
If costs have risen by a given percentage, your sell price must rise to protect your target margin. Even small margin improvements per cup compound quickly over thousands of transactions.
Consider Positioning
A business positioning itself as premium, craft-led or experience-driven cannot sustainably charge at the bottom of the market. Equally, a value-focused convenience model cannot suddenly adopt specialty pricing without losing alignment.
Customers subconsciously benchmark price against environment, branding and perceived quality. The number on the menu should match the story the business is telling.
Evaluate Competition
Finally, once you have a clear understanding of your costs, the margin you're trying to target and your positioning as a business, it's a wise idea to assess the competitive landscape.
What are the businesses most similar to yours locally charging for their coffee? Is yours comparable in quality, or would your customers bet with their money that yours is higher in quality?
The goal should not be to directly copy your competitor's pricing, but to understand where you are positioned locally and ensure you are offering significant value - whether in experience, quality, convenience or cost.
Build a Successful Coffee Strategy with Bridge Coffee Roasters
The most profitable coffee operations align product quality, equipment, labour model and menu pricing into a clear commercial strategy. When those elements work together, margin improves without compromising customer experience.
At Bridge Coffee Roasters, we work with operators to do exactly that. From selecting the right machine setup to understanding true cost per cup and optimising menu pricing, the focus is always the same: build a coffee offer that is commercially sustainable as well as operationally practical.
