San Francisco Coffee Chain Raises Prices By 7.5% Amid Post-Tariff Economic Pressures – CoffeeTalk

Andytown Coffee Roasters has recently implemented a price increase of 7.5%, the first hike since 2024, primarily due to various economic pressures such as tariffs, rising rent, and environmental challenges. Founders Lauren Crabbe and Michael Makrory pointed out that coffee growers are facing unprecedented market difficulties, exacerbated by extreme weather, rising production costs, and unpredictable harvests, which have substantially inflated the global price of green coffee.

The company emphasized its commitment to paying fair prices to farming partners despite the volatile market conditions. In addition to global coffee challenges, local economic factors are influencing costs. Rents for cafes in the Bay Area have surged, and suppliers of chocolate, tea, and milk have also raised prices, driven by tariffs on international products and packaging. Notably, healthcare costs for employees covered by full medical, dental, and vision insurance have soared by over 20% this year.

This trend of increasing prices is not unique to Andytown; it reflects a broader crisis in the coffee industry. In September, data showed that the average price for a pound of ground coffee was 41% higher than the same period the previous year. The U.S. Department of Agriculture (USDA) projects a rebound in world coffee production by 2026, attributing this potential recovery to favorable weather in Vietnam and record production levels in Indonesia and Ethiopia, which may offset losses from Brazil and Colombia. The USDA forecasts a record 178.8 million bags of coffee production for the 2025-2026 period; however, rising global demand is predicted to reach an all-time high, further sustaining elevated coffee prices. The USDA’s report indicates that global coffee consumption is expected to rise to 173.9 million bags, leading to a decrease in ending stocks for the fifth consecutive year down to just 20.1 million bags. Consequently, coffee prices have nearly tripled, as reflected by the International Coffee Organization’s monthly composite price index during this period.

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