Why Your Morning Coffee Costs More: The Impact of Coffee Futures and Inflation

If you’ve noticed that your favorite cup of coffee is getting more expensive, you’re not alone. The rising cost of coffee at cafes is largely driven by the surge in coffee futures prices, which are contracts that set the price of coffee beans for future delivery. In recent months, coffee futures have spiked due to poor harvests in major coffee-producing countries like Brazil, Colombia, and Vietnam. Unfavorable weather conditions, such as droughts and excessive rainfall, have reduced yields, tightening global supply. When coffee supplies shrink, prices rise, and those increases eventually trickle down to consumers.

Inflation has only added to the problem, pushing up the cost of labor, transportation, and processing. Coffee farmers face higher expenses for fertilizers and equipment, while roasters and distributors deal with increased shipping and fuel costs. These rising expenses force businesses to adjust their prices to maintain profitability. Additionally, currency fluctuations in coffee-producing regions affect global trade, making it even more expensive for companies to import beans. With supply chain disruptions and economic uncertainty persisting, coffee shops have little choice but to pass these costs on to customers.

So what are we doing about it? Well, we don't want to just increase prices. We're taking a look at all of our costs and how we can decrease expenses so we don't have to pass the increases on to you. With that being said, prices may have to go up some. There's some optimism in the industry this may be temporary. Let's have hope.