COFFEE breaks are costing businesses more than $1billion a year in lost productivity, according to latest estimates.

Workers seeking their daily caffeine fix have overtaken smokers as the biggest time-wasters for businesses.

Smokos cost the city's companies less than half as much in lost revenue, according to recruitment firm Talent2.

Whereas the average cigarette break takes five minutes, a trip to your favourite barista usually accounts for more than 10 minutes. The walk to the cafe, queuing up and time spent making popular personalised beverages contribute to the wait.

John Banks, director of Talent2, believes time lost from coffee breaks will become an issue for companies.

``I am sure there will be organisations that will begin to take control of the number of people who leave ad hoc for coffee,'' he said.

``But it would need to be dealt with sensitively.''

It's not all bad news: coffee breaks can also be beneficial.

``It's a social activity, and people need to get away from their desks,'' Mr Banks added.