€1.30 coffees in Spain: the low-cost price myth

€1.30 coffees: the myth that doesn't survive the first sip

A report by Cuatro this week highlighted a €1.30 coffee at a bar in Galicia, Spain. The news sparked disbelief —and some nostalgia— among those who have been paying far more for the same product for years. Because, with few exceptions, coffee at that price has disappeared from Spain's bar scene since 2003, as data gathered from consumers shows.

In Madrid, on O'Donnell street, an espresso costs just €0.90, a price experts already describe as "old-school neighbourhood" territory. But it's the exception. In Avilés, Oviedo or León, the cheapest espresso is around €1.60, with averages of €1.80. In Málaga, the range runs from €1.70 to €2.20 if you're not careful. In the city of Almería you can still find one at €1.30, but in a "nice neighbourhood". And in Castellón there are places offering it for a euro, though the atmosphere —as described— is not exactly that of a gourmet café.

Behind these figures lies a hospitality reality that the Cuatro report sought to highlight: when customers pay by card, the bank takes a commission that cuts into the bar's already slim margin. On top of that margin, there's VAT, taxes, electricity, water, rent and raw materials to cover. For many bar owners, serving a coffee at €1.30 borders on a loss. Still, the gap between the advertised and actual price suggests profitability isn't the only thing at stake: so is consumer perception, used to a decent coffee costing more and more. With these numbers, the question isn't where to find €1.30 coffees, but how on earth those still selling them survive.