Specialty coffee shops in the United States and importers are collectively adjusting prices due to cost pressures: From Oakland to Brooklyn

TaiwanBusiness04/15 18:52
Specialty coffee shops in the United States and importers are collectively adjusting prices due to cost pressures: From Oakland to Brooklyn

Many specialty coffee shops and importers across the United States have recently increased their prices due to climate change, trade policies, and rising costs. From Oakland, California, to Brooklyn, New York, businesses are facing a doubling of raw material prices, increased transportation and labor costs, and the pressure of new import tariffs. This price adjustment reflects the realities of the industry, highlighting that the coffee sector is at a pivotal moment of transformation.

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04/15 18:52

Specialty coffee shops in the United States and importers are collectively adjusting prices due to cost pressures: From Oakland to Brooklyn

Many specialty coffee shops and importers across the United States have recently increased their prices due to climate change, trade policies, and rising costs. From Oakland, California, to Brooklyn, New York, businesses are facing a doubling of raw material prices, increased transportation and labor costs, and the pressure of new import tariffs. This price adjustment reflects the realities of the industry, highlighting that the coffee sector is at a pivotal moment of transformation.

Multiple Pressures on Rising Coffee Prices

Royal Coffee, an Oakland-based company involved in importing and roasting, is one of the first to feel the pressure. The company's Director of Education, Chris Kornman, stated, "On April 10, we raised the prices of all drinks at our café by 50 cents, except for our $2 dark roast coffee." He pointed out that as importers, they are the first to bear the brunt of tariffs, "We are directly charged tariffs at the port, which has almost wiped out our profits."

Behind this wave of price increases is a series of intertwined global factors. In early 2025, Arabica coffee futures reached a new high of $3.60 per pound, mainly due to abnormal weather conditions in major producing countries like Brazil and Vietnam. According to Trading Economics, coffee prices have risen nearly 15% since the beginning of the year and reached a historical high in February.

In addition, the U.S. government has imposed tariffs ranging from 10% to 46% on coffee-importing countries, including Brazil, Colombia, and Vietnam. According to CBS News, these "reciprocal tariffs" policies have begun to affect the procurement costs of cafés, forcing businesses to pass the pressure onto consumers.

Local Cafés' Coping Strategies

In the Bay Area, Highwire Coffee Roasters notified customers at the end of February, announcing price increases for most drinks. Co-founder Robert Myers stated, "The price of green coffee has doubled over the past year, and raw materials like milk and cocoa have also increased by double-digit percentages, leaving us in a long-term loss."

Highwire's pricing strategy is phased, first adjusting coffee bean prices and later extending to drinks. At its Oakland Broadway location, the price of espresso rose from $3.75 to $4.25. Myers admitted, "We initially tried not to raise prices, but eventually had to face reality."

Similarly, Timeless Coffee in Oakland also raised the price of espresso from $4.25 to $4.50 in early 2025. Owner RJ Leimpeter stated that customers understand the situation, "Everyone is aware of the current global situation, and the community is supportive."

Souvenir Coffee adopts a strategy of small annual adjustments. Operations Director Jennie Prosser stated that they conducted the latest round of price adjustments at the end of 2024, with the current price of a 12-ounce drip coffee at $4 and a cappuccino at $5, still among the lower prices for specialty coffee in the area.

National Trends and Industry Response

This wave of price adjustments is not limited to California. Caroline Bell, co-founder of Cafe Grumpy in Brooklyn, New York, stated that although they have not yet adjusted prices, "We are already paying higher import costs due to climate impacts, and tariffs may force us to adjust prices."

Mighty Oak Roasters in Queens raised some prices last week. Co-founder Peter Moses stated that in addition to coffee beans, packaging and cups also face tariffs as high as 125% due to being sourced from China. He admitted, "If suppliers pass the costs onto us, we have no choice but to pass them onto customers, or we would have to close."

According to Business Insider, small roasters from Cleveland, Wisconsin, and other places are also gradually adjusting prices. Chris Kornman stated, "I receive news almost daily from businesses saying they are going to raise prices."

Future Challenges for Supply Chain and Quality

In addition to prices, supply stability has also become a focus for businesses. Highwire's Myers pointed out that supply instability may become the new normal, "This could permanently change the way coffee is traded."

Looking further, the intertwining of climate change, financial speculation, and tariff policies is putting unprecedented pressure on the coffee industry. Red Bay Coffee founder Konte warned, "If consumers are unwilling to pay market-aligned prices, coffee quality may suffer."

According to Perfect Daily Grind, despite rising costs, demand for high-quality coffee remains strong. The 2024 Specialty Coffee Transaction Guide shows that the median FOB price for small-batch coffee scoring 84 points or higher has risen from $4 to $5 per pound.

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