Shopping around could save $60 a month on your coffee habit

Thursday, 11 April 2019

Coffix was the cheapest of the coffee chains surveyed.

If you're clutching your coffee card in the hope of saving money on your caffeine habit, bad news – you're probably better to switch to a cheaper café.

Research by Finder compared the cost of buying a regular flat white five days a week at 12 New Zealand café chains.

It found that the average customer would save $7 a month if they used their coffee card for those transactions but they could save up to $60 a month if they switched cafes.

Coffix, which is in Auckland, Hamilton, Tauranga and Wellington, had some of the cheapest prices. It charged just $2.50 for a regular coffee, which would work out to $50 a month. The Coffee Club was the most expensive of those surveyed, at $110 a month.

* Shoppers still have to spend a lot to get rewards from loyalty schemes: Consumer NZ

* A look at New Zealand's loyalty schemes**

Some rewards schemes were more generous than others – those who bought from Muffin Break would get $21.60 in freebies a month. Coffee Culture was next at $16 and Wild Bean at $13.50.

Coffee Club offers a loyalty programme that gives a free coffee with every coffee purchased. This is a good deal if you're buying with a friend but limited value if you're alone.

Finder editor-in-chief Angus Kidman said the best way to save money was to focus on the upfront price of each cup.

'Our research found up to a $3 price difference for the same coffee order at different stores – if you buy 20 coffees a month that's $60 a month or $720 a year.

'However cafe loyalty programs can offer great savings, provided you're diligent with getting your card punched and stay loyal to one coffee shop. For instance, if you're an avid Muffin Break goer, you could save roughly $21 a month by using its rewards program. Much like a credit card or frequent flyer rewards program, it's important for consumers to compare their options based on spending habits and personal preference.'

He said it was possible that loyalty programmes could sometimes make customers spend more than they otherwise would.

'Loyalty programs can definitely have a halo effect - we think we're getting a bonus so we stop comparing. A red flag is spending more than you usually would simply in order to get a freebie. Take the bonuses when you can, but don't change your habits. That way you'll come out ahead,' he said.

'Per capita Kiwis are estimated to drink just under a cup of coffee a day. If we're conservative in our calculations and say an adult has just five coffees a week at $4.50, that's $1170 a year per person.

'However, if you were to have two coffees a day, seven days a week, you're looking at a $3276 a year habit.'