Cafes are continuing to see their profits squeezed.
Sales in the hospitality sector have increased 1.4% in the past year according to just-released figures from the Restaurant Association.
But sales for cafes and restaurants only rose 0.3%.
Coffee Club Director Brad Jacobs told Ryan Bridge they're having to absorb rising costs to remain competitive.
He says the minimum wage has gone up much faster than the price of coffee over the past decade.
LISTEN ABOVE

Tim Adams: Auckland FC Fan Group Representative previews the A-League Grand Final clash
02:56

Paul Giberd: Social Housing Aotearoa CEO on the social housing overhaul and possible impact on elderly people
04:11

Michael Baker: Otago University Public Health Professor on Pharmac's proposal to expand free flu vaccines
03:43