If Everyone’s Drinking Coffee, Why Are Coffee Shops Struggling?

A new survey has found that Americans are drinking coffee at their highest rate in 14 years, with most enjoying it from the comfort of home. A survey from the US National Coffee Association found that a staggering 85% of those who said they drank coffee did so at home. There are several factors behind this trend, including a nationwide rise in remote work. Before the COVID-19 pandemic, coffee consumption in cafes was on the rise, the exact reverse of what we see today. Price is another major factor. According to the Labor Department’s latest inflation reading, coffee prices are up approximately 19% over the last 12 months. Unpredictable weather conditions as a result of climate change have hurt crop yields and decreased supply from major coffee-producing countries like Brazil and Vietnam. New tariffs under the Trump administration have raised costs for importers and businesses, leaving cafes under pressure. Just last year, Starbucks closed 400 stores. Despite this, America remains the largest market for coffee in the world, with coffee drinkers consuming an average of 2.8 cups a day, totalling over 500 million cups daily overall. With at-home coffee-making equipment now approaching café quality, the incentive to visit coffee shops continues to decline.