Strategies to Mitigate the Impact of Rising Coffee Costs in your Café or Restaurant

In today's unpredictable economic climate, marked by inflation, ongoing tariffs, and trade tensions, small businesses are feeling the impact most, with tighter profit margins and reduced cash flow. Rising costs affect everything, even U.S.-made goods, due to outsourced materials that are not available domestically—such as coffee. The price of these essentials is impacting cafes and restaurants.

Yet small businesses remain the heart of our communities—places to meet up with friends over a latte, connect with like-minded entrepreneurs to discuss new business ideas over Americanos, or take a break with a cappuccino and your latest book.

Just as we collaborate with partner producers to share strategies and have open conversations about mitigating these impacts, we want to be a resource for all our partners navigating this uncertainty. In this blog, we'll explore actionable strategies to help your café or restaurant manage rising coffee costs—affecting the entire supply chain—without compromising the quality and experience your customers love.

1. Menu Optimization and Pricing Strategies: The End of 'Free' Refills

• Gradual price adjustments:

  Implement progressive price increases to minimize the impact on customers. At this point, most consumers understand that price hikes are inevitable, but slower, less dramatic increases spread throughout the year tend to be more palatable.

• Focus on higher-margin beverages: 

  Promote milk-based drinks, infusions, or filtered coffees that optimize cost and deliver added value to customers. These beverages can be brewed in bulk, reducing labor per cup and increasing yield per bag of beans compared to espresso-based drinks—allowing you to extract more cups per gram of coffee.

• Bag and Cup Size = Less Waste: 

  Offer 8 oz or 12 oz beverages instead of larger Americanos to optimize coffee usage. You’re using the same amount of espresso but cutting down on water, cup size, and preparation time. There’s also a growing global trend of offering half-pound bags instead of full pounds, which can help with price perception among customers.

• Upselling and cross-selling: Encourage add-ons or small presentation upgrades to help justify higher prices and enhance the overall customer experience.

2. Reducing Waste: Every Drop Counts, Literally

• Portion and dosage control: 

  Train staff to consistently use proper coffee doses in every preparation. Precision ensures quality and reduces unnecessary waste.

• Proper calibration = less waste + better taste + lower maintenance costs: 

  Regular equipment calibration is a low-cost, high-impact habit that improves margins, maintains brew quality, and prevents costly maintenance issues—all while enhancing the customer experience.

• Efficient inventory rotation: 

  A subtle but powerful way to cut costs, preserve product quality, and minimize waste from stale coffee. Keep stock moving to maintain freshness without overstocking, which can lead to a decline in flavor over time.

3. Reward Customer Loyalty and Educate Your Audience: Keep ‘Em Coming Back

• Differentiation through experience, highlighted through marketing: 

  Use storytelling to educate customers about coffee traceability, quality, and preparation. This builds trust and justifies premium pricing. Highlight the fact that commercial and specialty coffees are now similarly priced—yet specialty coffee offers a far superior taste experience.

• Loyalty programs: 

  If you're already offering customer rewards, consider adjusting the structure to better protect your margins. For example, shifting from a “buy 5, get 1 free” model to a “buy 10, get 1 free” format still rewards loyalty while reducing the frequency of giveaways—especially important when promoting higher-margin drinks.

• Promotion of alternative brewing methods: 

  Showcase methods like V60 or Chemex, which add a sense of exclusivity and craftsmanship to the coffee experience. These options not only appeal to coffee enthusiasts but can also deliver better profit margins.

   

4. Use Your Purchasing Power for Good

• Contracts or future purchases: 

  Consider securing fixed pricing or bulk discounts through contracts or advance purchases. Locking in rates can protect against market volatility and help with long-term budgeting.

• Customized blends: 

  Create or adjust blends to control costs while maintaining flavor and quality. A well-designed blend can deliver an excellent cup without impacting the customer experience—and helps you manage rising ingredient costs more flexibly.

• Financing options: 

  Offer flexible payment terms or early payment discounts to ease cash flow pressures. These small adjustments can support both your operations and your customers.

• Building strong supplier relationships: 

  Partnering with companies like Gento Coffee, which maintains direct relationships with producers, ensures pricing stability above Fair Trade standards and access to freshly roasted-at-origin coffee. Working with suppliers who value traceability and sustainability helps you deliver a consistently high-quality product while protecting your bottom line.

   

Implementing these strategies can help your business navigate rising coffee costs while preserving both customer loyalty and your bottom line. We understand that these challenges can feel daunting—but you're not in this alone. We're committed to supporting you every step of the way.

When you partner with us, you gain access to the expertise of a certified Q grader to help optimize everything from grind size to menu design, along with ongoing marketing support throughout our relationship. We're here to help you turn today's industry challenges into opportunities for growth and differentiation.

Ready to take the next step?

 You can reach out to us here.