Starbucks has seen its prices rise to $5 for a small cup of coffee. This change is due to rising costs such as rent, food, and inflation. Many smaller coffee chains, like Blank Street Coffee, have undercut premium coffee houses and are charging more for their beans due to their discerning customers.
Jason Kaplan, CEO of JK Consulting, explains that the price hike is not due to more people working remotely or spending much of their working days at these coffee chains. Instead, they are paying more for their beans because they have more discerning customers. Matto Espresso, with over 30 locations in New York City, was charging $2.50 for a cup of coffee and Blank Street Coffee $3.
The coffee chains are trying to figure out who their market is for different shops, as they see coffee roasting as a higher-end experience. The current situation could lead to prices rising, as prices typically go up, not down.
Kaplan does not believe there should be two prices: one for people who drink their coffee and leave, and another for those who spend the bulk of the day on the premises working. He believes that hospitality should be maintained, and that people who continue to buy a $5 cup of coffee will do what they will do.
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