If you’ve traveled to a European country, then this statement becomes more prevalent. The uniqueness of coffee as a beverage is its ability to bring people together. For hundreds of years coffee has brought communities together, and each country has their own coffee culture spin.
Being the second most traded commodity in the world, coffee proves its intention of not going anywhere. One reason for the success of coffee shops is the simple act of selling an experience. Coffee and friends, coffee and work, coffee and creative time, etc. Coffee is culture!
You can tell a lot about a culture by their traditions around coffee. However, It’s important we continue to nurture this because coffee is culture, and encourage healthy fellowship within the coffee community.
This needs to be considered when we think about the hostile, saturated environment of the coffee industry. We need to look out for the small businesses that provide unique, effective ways of bringing our communities together through coffee culture. To do this we factor in price.
The Coffee Pie: Coffee is culture
Yes, of course inflation plays a big role. There’s the economic trend of prices hiking in a relatively healthy market. However more and more of the coffee pie is being taken up by coffee chains. The saturation in the market is proving to be challenging for small coffee businesses.
According to the Bureau of Labor Statistics, the average price for a cup of coffee in 1913 was about 30 cents. A century later, the average price hit $5.90. In 2013 it was 6 bucks! it’s decreased in price since then, but is gradually going up as chains like Starbucks dictate coffee prices. A place like Starbucks really has no problem in the over-saturation. They can simply close stores that are under performing, and hike the prices 15 cents at high performing stores to regain profits.
To simplify, coffee is popular. Demand = higher prices. Lattes and cold brews require more beans, thus cost more and bringing the overall prices to a higher level.
The coffee pie is dwindling. Less room means more aggression with already claimed territory. If you can’t expand, you have to make up for lost ground by fully utilizing your pie pieces that you have. It’s important we invest in small businesses like My Sip Of Coffee. Coffee is culture!