Friday, 1 April 2022

Croatian Terrace Rental Cost to Soar - So Long, 10 Kuna Coffee?

April the 1st, 2022 - Could Croatia soon be bidding farewell to 10 kuna coffee, at least in the City of Split? It seems so, as Croatian terrace rental costs are set to soar with just about everything else as the inflation wave continues to engulf us.

Sitting and drinking a 10 kuna coffee in the sun on the famous Split Riva for hours on end while gossiping about politicians but never voting them out is an Olympic passtime for most Croats. One small cup of coffee can last a good two hours when people get together to put the world to rights, but the price of 10 kuna for that cultural experience may soon be no more.

As Poslovni Dnevnik writes, one of the latest decisions made by the Split local authorities is the increase in the price of Croatian terraces. This will take effect today (April the 1st, 2022) plunging the already suffering catering and hospitality sector and the people of Split are into more issues.

Coffee will no longer cost 10 kuna. Whether the price will be bumped up to 12, 15 or 20 kuna hasn't yet been firmly decided, but those in this business are very worried about whether people will be able to afford it, or simply change their habits out of principle.

Come rain or shine, be it a normal working day or a weekend, for many people, sitting on a nice Croatian terrace and mulling over a cheap coffee is an indispensable ritual. The favourite location for locals and foreigners alike in Croatia's second largest city is always the Split Riva (waterfront).

"It's better than going to psychotherapy. We don't really have that. So for us Dalmatians, this is all we have. We'll have to reduce our ''psychotherapy'' to once a day and we will somehow manage,'' stated Zora Gala.

"Everything can be left, I can even leave having a if I'm forced to do that. I can do that, but life is fleeting so why not indulge in some habits that are harmless?'' said Matija Mrdjen.

An espresso on the Split Riva already costs between 9 and 12 kuna, according to RTL.

"People look at the bill, they didn't ask how much it was upon making the order, but as soon as the coffee comes to the table, people immediately look at the bill and see what the price is," said waiter Augustin Silic. In addition to other costs, Croatian terrace rental in the very heart of Split has been growing since April last year, in some cases by almost 100 percent.

For more, make sure to check out our lifestyle section.

Monday, 28 March 2022

Will Ongoing Inflation Also Force Croatian Coffee Prices to Rise?

March the 28th, 2022 - Could Croatian coffee prices in the country's countless cafes also soar as a result of the current inflation wave? With just about everything going up in price quite significantly, cafe owners could end up being forced to up Croatian coffee prices.

As Poslovni Dnevnik writes, Vedran Jakominic, president of the Association of Caterers of Kvarner and Istria, recently commented on the formation of new price lists for cafes for N1 television. He said that they have already formed new price lists, but that they don't know how long they will remain sustainable because the situation regarding inflation across the world is constantly changing.

"We seem to have been living in some sort of bad joke since 2017, when VAT doubled, then things started to calm down and then the global coronavirus pandemic came. Now we seem to finally be coming out of the pandemic and now we've got a war. The prices of all groceries and goods has risen, energy prices have exploded three or four times. But while this war is going on and terrible images continue to roll in from Ukraine, I think we'll manage to tighten our belts and survive, it's better than what's happening to the Ukrainians. But if you were to ask of me if this situation is good... well, it isn't at all,'' said Vedran Jakominic.

He pointed out that Croatian coffee prices aren't rising because of the basic product of coffee itself, but the biggest problem is energy prices and of course, you need energy to create this country's cult drink.

"In order to compensate for the increase in the price of electricity, you have to increase the price of coffee by one kuna, in order to compensate for the increase in the price of gas, you have to raise Croatian coffee prices by one to two kuna. Gas shot up for companies by 400 percent, electricity went up three times as well. For the average restaurant, this may mean that from paying around 8,000 kuna, their electricity bill soared to a massive 35,000 kuna. You can't correct that many price lists,'' explained Jakominic, adding that a basic espresso in Rijeka currently costs from 8 to 11 kuna. They aren't asking for a VAT reduction because they have, quite simply and understandably, all but lost faith in state aid.

"I just don't expect anything from the state anymore. They've shown that they have other interests. I understand that getting voters on side is more important. The state reacted well at the beginning of the coronavirus pandemic, but that help has faded over time," he concluded.

For more, check out our lifestyle section.

Monday, 7 February 2022

With Energy Prices Soaring, How Much Will Croatian Coffee Prices Rise?

February the 7th, 2022 - Energy prices are continuing to increase, and with it many other services could also see price hikes. How much could Croatian coffee prices in cafes and bars actually increase by? Many claim the idea of 20 and 25 kuna are ridiculous, but a kuna or two here and there is certainly likely...

As Jutarnji list/Novac/Vedran Marjanovic writes, according to Rijeka-based cafe owner Vedran Jakominic, there is no basis for Croatian coffee prices to increase to 20, 22 or 25 kuna, we can talk about price increases of a kuna or two, but not much more. He said this referring to current announcements that drinking coffee in bars and cafes across Croatia will become like drinking a luxury like whiskey or more expensive wine.

''It's true that the prices of raw coffee, sugar and milk have seen a hike, but it's really not clear to me where the stories are coming from that Croatian coffee prices might go up two or three times. These are just fairy tales,'' belives Jakominic, who is also the president of the Association of Caterers of Kvarner and Istria and the head of the Regional Office of the Association of Voices of Entrepreneurs for Rijeka. In Jakominic's cafes, a cup of coffee costs between seven and nine kuna, depending on the location, he says, and macchiato from nine to eleven kuna.

Energy prices

''If I raise my coffee prices, it will be due to rising energy prices, and we know that, among other things, there's talk of increasing gas prices rising by 400 percent. It's known what it would mean for those in the catering and hospitality industry if, for example, their gas bill jumped from 15,000 to 60,000 kuna. So, I expect the intervention of the state, which has announced that it would step in,'' Jakominic noted.

The real blow to the price of the favourite beverage of many of Croatia's residents lies in the expected growth of energy prices, and not in the growth of raw coffee prices on the world market, as claimed by domestic companies within the initiative of the Croatian Employers' Association (HUP).

''The increase in stock market prices of coffee on the global market has been steady since the beginning of last year, but our members depreciated most of that blow at the expense of their business with a correction of prices of our products to customers of ten percent,'' they said from the Coordination of Coffee Producers, Processors and Distributors within HUP, calling for government intervention measures to mitigate the cost shock caused by rising energy prices.

Price and competition

The claim that recent announcements of a radical increase in Croatian coffee prices are unfounded has also been assessed by caterers and hospitality industry workers who already charge higher prices for the same beverage. Nik Orosi, one of the leading Croatian baristas and the owner of the Eliscaffe cafe, where an espresso costs thirteen kuna, says that there are grounds for raising Croatian coffee prices, but, he adds, such a decision is always up to the owner at the end of the day.

''Here in Croatia, we have very strong competition in the offer of cafes, restaurants and other catering facilities where you can drink coffee. Therefore, if someone wants to raise their prices to 15 or 20 kuna, they must count on the fact that the competition that may have lower prices. My coffee is more expensive than in some other places, but my guests know why this is the case and why they like to drink coffee here,'' explained Orosi.

In addition to controlling the rise in energy prices, the state has another lever to prevent rising Croatian coffee prices. This is a special tax on raw coffee, the abolition of which is already being sought by industrialists.

For more, check our dedicated lifestyle section.

Thursday, 3 February 2022

Some Zagreb Hospitality Establishments Plan to Increase Coffee Prices

February the 3rd, 2022 - Could coffee become a luxury? This Croatian custom which involves sitting around a (usually really small) cup of coffee for hours on end while putting the world to rights might be affected by the introduction of the euro as Croatia's official currency next year.

As Novac/Jutarnji writes, how we can avoid price increases is a question that is becoming more and more important as the introduction of the euro approaches. In the run up to the change, mechanisms are needed to monitor prices - such as their double expression, and, ultimately, so-called blacklists. The Croatian Government is not giving up on trying to hound this further, and it claims that it intends to denounce all those who have decided to make extra money on the back of the change unjustifiably.

It's too early to guess how much a cup of coffee will end up costing due to the introduction of the euro and the rounding off of prices. Because even before that, some Zagreb hospitality establishments will, as they say, raise their prices due to the overall higher prices of energy and raw materials.

''This year, we expect an increase in all prices due to rising energy, gas and electricity costs, as well as the already announced increase in coffee prices of 150 percent, which has been announced by some Zagreb hospitality establishments. Will coffee become a luxury now? That's the question that has arisen. The introduction of the euro in Croatia will also result in a certain price increase, Franz Letica, president of the Association of Caterers of the City of Zagreb at HOK, told HRT.

Even before the introduction of the euro, hairdressing and beauty services will become significantly more expensive, but the conversion itself should not cause too much of a price increase for the end user.

''There will be no problems in terms of recalculating prices, but it will probably involve some rounding, purely because of the simpler handling of the euros,'' said Antonija Tretinjak from the Guild of Beauticians and Pedicurists at HOK.

The growth of prices of most products is already very visible in stores. The Most (Bridge) party believes that the Croatian Government must not give up publishing a black list of traders who will unjustifiably increase their prices due to the conversion.

''What we're asking for is that this measure of publishing the list of those who unjustifiably raise prices will certainly be part of this changeover of the kuna to the euro. We also want to open the question of whether this is the time for the introduction of the euro at all,'' said Nikola Grmoja from Most.

The advantages of the introduction of the euro are multiple, says the Minister of Economy and Sustainable Development Tomislav Coric, and the black list will be one of the ways to prevent any unjustified price increases.

''The idea is that those who change their prices and use the time and process of conversion for one-time profit without any reason or basis should be noticed, both by consumers and institutions. What we'll do in the coming months is for that to happen and for them to be denounced,'' warned Coric.

The best way to prevent unjustified price increases is to double-check prices and keep making a note of them in the few months before the introduction of the euro.

For more, check out our business and politics sections.