Then, pour-overs and single-origin beans were just becoming popular with consumers. MacHamer, senior manager of the coffee program at the Good Eating Company, began working in coffee 15 years ago. Perhaps you need a pump of vanilla? A heavy shake of chocolate sprinkles? Some whipped cream? Your order may vary, but that extra dose of flavor is not free.įlavored lattes are the most requested item for Grant MacHamer, who sets up cafes for corporate workers across the country. Some days, plain coffee is just not enough. “Every single product that I order has gone up,” he said. Still, Lowes said that rising costs are squeezing bottom lines. Lowes charges a base latte price of $4 to encourage customer loyalty, relying on volume to generate profits. In Dallas, Adam Lowes, co-owner of LDU Coffee To Go, said he is “astonished” to see what some shops are charging for coffee right now. “We need to keep it affordable so it stays a daily habit.” “That’s the tightrope we’re all walking in the coffee industry,” she said. More recently, it was because inflation and supply chain crunches had made nearly every element of her business more expensive, from coffee beans and milk, to cups and lids.Ĭrabbe said she tries to keep up with rising costs without alienating daily customers. The first time Crabbe raised prices, it was to cover the cost of employee health insurance. And as you probably know by now - those prices are going up. That coffee shop you visit every morning has to pay rent, taxes and its electric bill.

In San Francisco, Crabbe says wages and benefits for her employees make up nearly 40 percent of the cost of each latte.Īlong with paying and training workers, coffee shop owners must keep the lights on - literally.

1, but said some of the new benefits would not be available to unionized stores. The company announced another raise to take effect Jan. The coffee giant said its average hourly wage is now around $17.50. Since 2021, Starbucks workers at hundreds of stores across the country have voted to unionize. “It’s an arduous job to be serving customers all day, and there should be more money for that role as well as to encourage a more diverse workforce,” Townsend said. Jonathan Townsend, director of barista-training company the Institute of Coffee, said baristas deserve more money during what he called a “cost of living crisis” driven largely by higher inflation. Many shops have raised wages and increased perks to keep workers on board and attract new workers.

Restaurant and shop workers have pushed for higher wages, part of a larger trend that led to a summer of strikes in America. While coffee and milk prices are up, their effects pale in comparison to one of the biggest expenses for cafes - labor, said Ganes.

Coffee and vanilla 2019