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Minggu, 19 Juni 2011

Higher coffee prices brewing, and coffee shops, consumers feel it

 Higher coffee prices brewing, and coffee shops, consumers feel it


Kelly Thompson, co-owner of the Urban Stampede coffee shop in downtown Grand Forks, said the business has been absorbing as much of the increased coffee costs as possible. But occasional retail price increases are inevitable, he said.
"We have to be careful how much we raise prices," Thompson said. "You can only raise prices so much before people stop buying."

Coffee roasters across the country are charging higher prices to grocery stores, small coffee shops and other retailers because of greatly increased costs to acquire beans from growers. Retail operations, in turn, have passed on the higher prices to consumers.

The price that The Coffee Co. on South Columbia Road in Grand Forks pays for raw coffee beans from California has doubled in the past 14-15 months, according to owner/manager Sarah Sand. The Coffee Co. has passed on the increased costs to its wholesale clients, which are all located within about 100 miles of Grand Forks.

But Sand said the company is eating most of the increased costs on the retail side of the business, which includes an espresso bar and sales of coffee and other drinks.
"We've been kind of soaking it up," Sand said of the increased costs. "That has greatly increased our costs. When you have something doubling in price, it makes it difficult." The Coffee Co. remains profitable, despite rising costs, Sand said.