Answer:

Although the actual cost of producing coffee is negligible, a regular cup of coffee at a coffee shop now costs about 400 yen (US $3.50). In a busy section of town, the price can go up as high as 800 yen (US $7.15) or even to 1,000 yen (US $8.90).

Not only coffee, but prices of drinks at coffee shops should not be regarded as just drinks per se. It should be regarded as a location charge covering the cost of enjoying a short break.

The actual price of a cup of coffee does not differ appreciably throughout Japan, but location makes all the difference in price considering that the cost of land of the various coffee shops vary. If the rent is high, the coffee shop owner attempts to devise means to raise the price of a cup of coffee to cover the high rent such as bringing elegance and luxuriousness into the overall atmosphere of the coffee shop, or choosing to be particular about how the coffee is made and served to bring out the best in coffee.