Chris Kornman, a coffee specialist at Royal Coffee, outlines the impact of tariffs on the coffee industry. His café recently raised prices by 50 cents due to a 10% increase in import costs resulting from tariffs, which eliminates profit margins for importers like Royal Coffee. Kornman notes that the rising cost affects not just cafés but also grocery stores and other coffee businesses. He emphasizes the industry's need to adapt to these economic challenges, including potentially asking customers to accept higher prices for their coffee.
I think the coffee industry at large is facing an unprecedented crisis. We have to figure out how to make rising costs and uncertainty about tariffs and climate change sustainable for everyone involved.
At Royal Coffee, we import beans and sell them to coffee roasters. Our business model also includes classes and the coffee we sell at The Crown café.
We raised our café prices by 50 cents for every drink... because, as an importer, we are the first ones hit by the actual cost of tariffs.
President Donald Trump paused some of his proposed tariffs, but we're still being impacted by a 10% increase at the point of import for all those countries except Mexico.
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