Executive Summary
- Specialty coffee prices in Dubai have risen significantly, sparking debate among industry experts.
- Dragoslav Džudović breaks down the real cost of a cup: between AED 15 and AED 35 before profit.
- Sarah Sahwan argues that some cafés add a “greed” margin, with markups exceeding 200%.
- Qusai Al Jabal insists that high prices are only fair for rare, exceptional beans.
- Albina Khamidullina finds prices reasonable from an industry perspective, but admits specialty coffee is a luxury for most consumers.
- Most experts agree that there is a noticeable gap between price and quality in many cafés.
- No single business model fits all. Low‑price high‑volume and high‑price curated experiences can both work.
Specialty Coffee Pricing in Dubai: Fair or Overpriced?
Dubai’s specialty coffee scene has expanded rapidly in recent years. Prices have risen just as fast, especially for manual brews like V60 and filter coffee. This growth has opened a wider debate. Is specialty coffee still an everyday product? Or has it become an exclusive, luxury experience?
Qahwa World asked nine leading experts for their views. Their answers range from defending prices as a true reflection of operational costs to condemning them as unjustified. This investigation presents their full responses.
The Cost Reality: A Detailed Breakdown
Dragoslav Džudović, a well‑known barista and coffee consultant, offers a rare numerical breakdown. He insists that most consumers do not understand the real cost of a single cup.
“The real cost of one take‑away cup of coffee with milk, depending on the location in the UAE, ranges from AED 15‑25 to AED 25‑35+. Yes, you are reading that correctly. That is the cost. Let’s break it down per cup: Cost of goods – AED 4‑7 (beans, milk, packaging). Labour – 40% of the cost, which is AED 5‑15 (time to make the drink, service, salary, visa, gratuity, accommodation, insurance, and other benefits). Operating costs – AED 4‑10 (rent, utilities, AC, coffee machine, ice makers, chillers, freezers, etc.). Do not forget license, permits, marketing, insurance, fit‑out, POS, and bank fees.”
Therefore, when a café charges AED 35 for a cup, it may not be excessive. Many cafés, however, set their prices based on competition, not on real costs. Dragoslav warns that this approach is not sustainable. He adds that most small cafés fail in their first year because of miscalculations.
Sigrid Ballard, a specialty coffee expert, supports this view. She explains that Dubai’s pricing is higher than many global markets, but it reflects the city’s operational reality.
“In Dubai, rent and operational costs are the biggest drivers, especially in prime hospitality and lifestyle locations. While green coffee quality matters, the final retail price is more heavily influenced by location costs, staffing, fit‑out investments, and overall brand positioning.”
Samson Kibunja, a seasoned barista, adds that price should never be seen in isolation. He argues that a cup of coffee is the result of a long chain.
“The price of coffee is shaped by an entire ecosystem. Dubai is a market where high operational standards and premium locations significantly affect pricing. A cup of coffee is ultimately the result of a long chain – from farm to roasting, training, equipment, hospitality, and final service.”
Albina Khamidullina, from drinkit, offers a nuanced perspective. She agrees that costs justify prices, but she also acknowledges the consumer’s reality.
“I think specialty coffee is priced pretty reasonably, given the cost of beans, labor, and rent. But I say this as an industry worker, and I understand all the costs that go into the final price of the product. It is reasonably priced, but to the final consumer, it still might be too expensive.
Specialty coffee, unfortunately, is a luxury in most places. The biggest factor is rent, then labor (not only salaries, but visas, insurance, etc.), and of course, the CAPEX, and the coffee shop’s need to get its return on investment. At most specialty coffee places, a V60 cup costs 50‑60 dirhams.
I consider it more of a luxury than an everyday product, given that you can get a decent cup of coffee for 15‑20 dirhams. (We at DrinkIt serve only specialty beans, and you can get an americano for 15 dirhams, a filter for 17, and a V60 for 25 dirhams, which is a very good price considering market benchmarks.)
The current market lacks a consistent place where you get the same great product and service every time. There are a lot of amazing places in Dubai, but no two visits are the same in terms of quality. For sure, there is a big gap between the price and the product’s quality.
But in this case, the surroundings need to be taken into consideration: what’s the interior like, how many people work there, is it a prime location, and do they use loud marketing? It’s all included in the price of the final product. It depends on the business model and the brand’s goals. Both ways have their benefits, so I cannot answer this question without knowing the goals. We at DrinkIt try to find the gold standard between them.”
The Counterview: Overpricing and the “Greed” Factor
Sarah Sahwan, founder of The Optimist café, is blunt. She believes that some cafés charge far more than necessary.
“I believe the two biggest factors are rent, and greed. A coffee cup costs range 5 – 10 dirhams and that’s excluding the cost of labor and other expenses such as the rent, utilities and inflation , which means there is room to mark up the price – but not by 200%. In malls, a cup of coffee now ranges between AED 25 and AED 50, and not all of them offer good quality.”
Hassa bint Ghuwaifa, an Emirati journalist and coffee enthusiast, also finds prices too high. She compares Dubai to other Gulf markets and sees a clear gap.
“Prices are high, especially compared to the Gulf region. It has become normal for a single cup to exceed AED 45. Specialty coffee is still a daily product for many, but at an abnormally high price. There is a clear gap between price and quality. I have paid over AED 70 for a cup that was worth every dirham. But I have also paid half that price for cups I regretted drinking.”
Stefan Kica, an industry observer, summarises his position even more sharply.
“As a regular consumer, prices are very high. As a B2B user, they are very affordable. That difference is the problem. Specialty coffee has become a luxury product. The market misses affordable coffee for everyone. There is a gap between price and quality – overpriced with no reason.”
A Conditional View: Quality and Rarity as Justification
Qusai Al Jabal, co‑founder of JabalBon Coffee Farm in Yemen and founder of Mokha Roots in Dubai, offers a more nuanced perspective. He does not reject high prices outright. Instead, he ties them to quality.
“It depends on the quality. It is too expensive if a café serves average coffee but charges a premium price. However, the high price is fair when you are drinking rare, high‑quality beans that are hard to grow, harvest, and ship. The biggest factors in Dubai are high rent in prime locations and luxury shop fit‑outs. Specialty coffee is moving fast toward luxury. It has become a luxury ritual.”
Qussai also warns about the gap between appearance and substance. “If coffee is expensive, the quality in the cup must match the price. It is wrong to buy cheap, low‑grade coffee, mark up the price ten times just because the shop is trendy.”
Syed Naveed, a well‑known coffee blogger and photographer, takes a middle position. He finds pricing fair compared to commercial coffee. But he admits that some extremes are hard to defend.
“Against commercial coffee, I find it fair. The quality in the cup, the sourcing story, the experience inside a specialty café – all of it adds up. But pricing can get out of hand fast when you move into micro‑lots and nano‑lots. The most extreme example recently has to be the Nido 7, priced at a thousand dollars. That is not a cup of coffee anymore. That is a statement.”
Syed also notes that green coffee prices have been climbing, and roasters can no longer absorb the increase. Rent, electricity, water, logistics, and labour have all gone up. As a result, a cappuccino can easily hit AED 30 or more in some places.
Where Do the Experts Stand? A Quick Summary
| Expert | Stance on Pricing | Most Sustainable Model |
|---|---|---|
| Dragoslav Džudović | High, but reflects real costs (AED 15‑35 cost) | Low price with high volume after correct cost calculation |
| Sigrid Ballard | High but justified by rent and operations | Balanced: quality + efficiency + repeatable price |
| Samson Kibunja | Fair when seen as part of a whole ecosystem | Both models can work with integrity |
| Albina Khamidullina | Reasonable from industry side, but luxury for consumers | Depends on brand goals; drinkit seeks middle ground |
| Sarah Sahwan | Unreasonable; greed is a major factor | Lower pricing with higher volume |
| Hassa bint Ghuwaifa | Too high compared to Gulf neighbours | Lower prices with special higher‑priced options |
| Stefan Kica | Very high as a consumer | Low price with high volume |
| Qusai Al Jabal | Fair only for rare, high‑quality beans | Higher pricing with curated experience |
| Syed Naveed | Fair vs commercial, but extreme micro‑lots overpriced | Both work if the concept is strong |
Frequently Asked Questions
A: According to experts, the main reasons are high commercial rents, operational costs, staffing expenses, imported beans, and business models that focus on premium experiences. Dragoslav’s breakdown shows that the real cost per cup can reach AED 35 before any profit.
A: No. Opinions are divided. Some, like Dragoslav and Sigrid, say prices reflect a high‑cost environment. Others, like Sarah and Stefan, call them excessive. Qussay and Albina argue that high prices can be fair if the coffee quality is exceptional, but Albina adds that for consumers it remains a luxury.
A: She believes some cafés mark up prices by more than 200% without a corresponding increase in quality. In her view, a cup that costs AED 5 – 10 excluding the cost of labor, other expenses such as the rent utilities and inflation, to make should not be sold for AED 45 unless there is a real reason, such as rare beans or a unique experience.
A: It is both, depending on the café and the customer. Some experts say it remains accessible through various price points. Albina notes that while industry workers see reasonable pricing, for most consumers it is a luxury, especially when V60 costs 50‑60 dirhams at many places.
A: There is no single answer. Dragoslav and Sarah favour lower prices with higher volume. Qusai prefers higher prices with a curated experience. Albina says it depends on brand goals, and DrinkIt tries to find a middle ground.
A: Experts point to a lack of transparency, consumer education, and a real connection to coffee farms. Albina adds that consistency is lacking: no two visits to the same café guarantee the same quality.
