Cup of Coffee in Boston Now Over $4, as Tariff, Bean Costs Escalate
This price rise outpaces the national median as tariff-related costs continue to push up expenses for coffee shops and roasters.
Prices for a cup of coffee in Boston have risen to a median price of more than $4. This price rise outpaces the national median as tariff-related costs continue to push up expenses for coffee shops and roasters.
Even after President Trump recently dropped tariffs on coffee, Boston cafés continue to face higher bean costs, which is keeping the pricing pressure across the market.
According to a WBUR report, some businesses are tweaking their blends and sourcing from cheaper origins such as Mexico, Colombia, and Costa Rica to curb costs. Some are also raising prices on pastries and related items to share the burden with consumers.
"Prices are about to go through the roof for us, which will then mean we have to raise prices," said Josh Gerber, owner of 1369 Coffee House in Cambridge. Gerber has been in business for more than three decades.
Gerber said he purchased his next batch of coffee while the tariffs were in place. His coffee roaster's sources have told him that prices will rise by more than 30% — an additional $3 per pound of beans.
Existing pressures from drought-related supply issues in Brazil and sustained higher bean costs across the supply chain are also compounding the coffee cost crisis.
Unfortunately, the recent tariff reduction on coffee won't be an immediate solution to the problem. Kate Ashley, who teaches supply chain management at Northeastern University, told WBUR that since the market has already become accustomed to tariffs, adding supply chain and other market volatilities to the equation makes it hard to bring down prices overall.
Market experts say a new price equilibrium may be set, suggesting prices may not revert to pre-tariff levels. In addition, consumer habits could shift toward more affordable options or treating coffee as a less frequent luxury.
Shop owners who spoke with WBUR, however, anticipate further price increases. Medium cups of coffee could add about 30 cents to the cost, with some drinks exceeding $4 in more venues.
