When you increase your prices from 3% to 5% annually, customers may not notice the small price change and remain loyal to your coffee shop. For example, if your 12 oz cup of coffee is $2.50 and you increase prices by 5%, the new price for that product will only be $2.62. That is only a price increase of 12 cents.  The gradual increase of your prices will do good for increasing your net revenue.