A couple of weeks ago, Kuwait Flour Mills introduced coffee at some of their branches, and it’s been causing quite a bit of drama. Why? Because of the prices. KFM is selling espresso and Americano for 500 fils, and a latte for just 750 fils. That’s around half the price, or even less, compared to most coffee shops.
They aren’t skimping on quality either. KFM are using proper grinders (Eureka) and coffee machines (IBERITAL) to pull the shots, and their beans are from 48 East who also provided the training.
I passed by the Yarmouk branch this morning to see what the fuss was about, but the line was so long I decided to drive to their Fahad Al Ahmad branch instead. It also had a line, but a much shorter one. I tried both the hot and iced latte and although they weren’t better than the coffee I make at home, it definitely was better than most coffees in that price range.
Some coffee shop owners are upset about the pricing and have been voicing their frustration online. Since Kuwait Flour Mills is government-owned, they feel it’s unfair for them to sell coffee this cheap.
It costs me around 360 fils to make an espresso at home using beans from %Arabica, so it definitely costs coffee shops and KFM even less with wholesale pricing. So are coffee shops being greedy, or is KFM undercharging?
Personally, I think the hype might hurt some coffee shops for now, but eventually people will go back to buying coffee from their favorite (and usually most convenient) spots.
24 replies on “The Drama Behind the Kuwait Flour Mills 750 Fils Latte”
For the last time, people need to understand that KFM is subsidized by the government.
Why is this ruffling anyone’s feathers?
Local coffee shops are overcharging for their coffee anyway.
+1
Exactly
Competition is always good. Without competition there is stagnation and greed. Look at the AI market. When new competition came, everyone was forced to change and accelerate their advancements. And fix their pricing and free tiers to get people in.
+1
KFM is selling toast for 250 fils, while dozens of bakeries are selling it for double or triple the price yet no one complains?
+1
What’s the drama about? Go to any local Indian restaurant and they charge 150 fils for a small cup of Cafe Latte (which is basically coffee with milk). Double it and you still pay 300 fils. Ask them for fancy cup and it’ll be 400 fils. There’s something for everybody in Kuwait. This isn’t Champs-elysees.
Grinding your own beans and making coffee is different than Cafe Late from an Indian restaurant.
This is the same price as IKEA (or in the same ballpark) not sure what people are crying about
I think the brand KFM is more trust worthy than any other brands here.
i dont know what is the issue about if i wanted to have cheap coffee ill make it at home if i wanted a good coffee i would get it at one of the fancy places like caf toby arabica and i know there are a lot more but im just mentioning a few but honestly we all know coffee is hella expensive in kuwait since starbuck launched so many years ago, i rememeber when krispy kreme opened me and my friend would hang out after uni at avenues and get a donut and coffee for 1 KD and that was almost every other day, sometimes its not about the money or the coffee but the time spend there with people at the memories, coffee places need to relax KFM aint gonna be most people places to grab coffee and sit, its just gonna be for people on the move, but if they cant give a better coffee and service then a sub 1 KD coffee then its better the work on their coffee rather then bugging the government to Hike up Prices. PS I still go to Costa every other week with friends cause its just a norm for us it not about the coffee
Oh? So the coffee shops selling coffee for 2 KD are complaining about competition?
I remember buying top quality double espresso at Mecca for only 10 riyals, and that’s inclusive of their 15% VAT Tax.
That’s almost 700 fils of after-tax revenue per espresso. And I’m talking specialty coffee at a prime location in Mecca.
Businesses benefit from lower raw material wholesale prices but it probably costs them more to make both at home and KFM. For example, a coffee shop will pay significant building and land rents, whereas if KFM are utilizing dead space, it is effectively free. In addition there are staff wages; utilities; and other direct overheads which all add up.
James Hoffman looking at the UK model estimated only 30% of the (post-VAT) cost of a coffee was for the product (coffee, milk, etc.).
But yes, coffee is overpriced in Kuwait.
Boohoo, my 2.5 KWD coffee has competition.
I genuinely believe any coffee place could’ve gotten away with selling coffee this cheap and still make a profit because the price markets itself.
But greed is greed, coffee place owners are bumping the price of a simple latte with every new opening and getting away with it, because their target audience (IYKYK) usually don’t bat an eye at how they spend.
But when a place doesn’t follow the trend of overpricing everything, gasp, how dare they, this will hurt small businesses…
Coffee shops prices in kuwait are absurd.
It costs me 6KD to drink coffee for A MONTH!!
I (heart) KFM
Other coffee shops arent over charging or being greedy. KFM can afford to put these prices because they are huge company that probably earns thousands per day thru the sales of their baked goods. They earn way more per month and therefore they can afford to pay rent, salaries etc.
Smaller coffee shops have 1-2 branches with the exception of a few that may have more. Theyre earnings are lower therefore they need a higher margin to pay for rent, salaries, etc and still make profit.
People that dont have businesses dont realize how high rent prices are in Kuwait. It could eat 50% of your monthly earnings if not more.
Its like comparing apples and oranges if you compare a huge company like KFM and small coffee shops
Coffee shops are definitely being greedy!
Any espresso or americano over 1 KD is absolute robbery, and a bit of milk for a latte would never take it up to 2 KD+
Same thing goes for their sandwiches, I’ve seen shitty sandwiches for 3 – 4 KD!
In Hawalli, you can get a Halloumi sandwich for 2.5 KD ,or .250 KD at the shop next door.
It’s been really interesting seeing all the buzz around the 750 fils latte. As someone who genuinely loves and supports small cafés, I totally get why it’s sparked so much conversation.
Kuwait Flour Mills has every right to offer coffee at prices that work for them but when you’re a *government subsidized* operation, it naturally puts a lot of pressure on small, independent cafés who are dealing with CRAZY rent (4K+), staff salaries, and the cost of sourcing good ingredients. It’s just not a level playing field.
Spots like Toby’s, Vol.1, Masaha, Boost, and Richards put so much more into what they do & invest in more than just coffee. That kind of experience can’t be priced at 750 fils.. They’re building spaces people actually want to be in. That kind of community, and atmosphere just can’t be priced at 750 fils.
That said, I don’t think it has to be a competition. There’s room for both models. But I really hope people keep showing up for the cafés that bring real value. I heard on the grapevine that Masaha13, Kellys and Richards are closing down due to high rent prices and other reasons. It’s such a shame!
Seems to me KFM are pulling out all the stops. Yay! let it rain ‘competition’.
I recently grabbed a cappuccino from a food truck in Sabah Al Ahmad, and it put every fancy coffee shop to shame—my entire idea of flavor and froth did a complete 180.
Whats the name of the food truck please? 🙂
Well IKEA is 500 fils for all types of coffee and tastes great.