As coffee costs climb, do you want to get more for your money? There are more and more possibilities to make cold brew in your kitchen or purchase prepackaged versions at the grocery store.
Call it a convenience premium, but this summer, when coffee costs soar, you might have to pay a little more than usual to satisfy your thirst for cold coffee on the go. These days, a lot of shoppers are brewing at home and in grocery shops to get better deals.
According to Darren Seifer, a food and beverage expert at the research company Circana, 35% of coffee orders at cafes and restaurants are cold—a 7 percentage point increase since 2017. However, as coffee lovers have long understood, cold orders are typically more expensive.
According to digital payments processor Toast, American consumers paid $3.08 on average for a regular cup of coffee during the first quarter, $5.14 for cold brew, and $5.46 for a latte. Generally more expensive cold beverages, such as matcha tea lattes and iced shaken espressos, assisted Starbucks in offsetting a drop in foot traffic during the second quarter.
Seifer advised getting it from a retailer if you’re looking for the best deal, noting that convenience stores “may be able to undercut quick-service restaurants’ pricing a little bit.”
Coffee counters are already becoming unpopular with some customers.
60% of iced coffee expenditures between March 2023 and March 2024 went toward beverages purchased outside the home, a decrease from 68% four years prior. The price of coffee has been rising globally at the same time as the coffee offered in U.S. grocery stores is becoming slightly less expensive due to dry circumstances in important growing regions. June prices were 1.6% less than the same month last year, according to official data.
Thankfully, there are increasingly options available to coffee enthusiasts to savor a cold cup in their own homes.
Nescafé, a manufacturer of instant coffee, debuted its “first-ever cold-liquid-dissolvable coffee” in April. The $7.39 suggested retail price per bottle provides dozens of cups, making it somewhat more expensive than a 16-ounce iced coffee at some Starbucks outlets after taxes. As for cold coffee beverages and espresso-based drinks, the company reported “increasing demand—alongside an increasing interest in making these café-quality beverages from home.”
Keurig is introducing a “K-Brew+Chill” machine later this year for fans of iced coffee to enjoy at home. The gadget, which the manufacturer estimates will cost about $200, can make hot coffee in three minutes or less and then cool it down to a temperature “as cold as the coffee shop.”
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According to Josh Hulett, senior vice president of product management, “that next evolution is really being able to bring coffee-house-style beverages back into the home and onto the counter” in a recent promotional film.
A portion of that development has taken years to complete. Many Americans stopped getting coffee on their way to work during the pandemic and started making their own on their way to the sofa. While businesses found in supermarket aisles like Nestlé and Keurig aim to strengthen that habit, café owners want customers who like cold coffee to return. And companies who sell in both markets are making an effort to do both.
For instance, Dunkin’ is marketing its line of iced coffee and “refreshers” under the moniker “Big Dunkin’ Iced Energy” in an attempt to entice customers. Additionally, the brand just restocked store shelves with its iced coffee bottles for use at home and on-the-go.
Smaller businesses are also attempting to attract clients who would be reluctant to pay $5 or more to a barista for a jug of cold brew.
Buddy Brew Coffee, located in the Tampa, Florida, has been offering home brewing coffee workshops for years, and according to Dave Ward, one of the founders, the classes are now “packed.” Held within the original cafe, the two-hour classes cost $69 for a lecture on the science of coffee brewing and $175 for a seminar on crafting latte art.
In 2021 and 2022, Buddy Brew increased menu pricing by around 20% in order to cover increased expenses for personnel, real estate, shipping, and coffee beans. The business has also seen that, similar to big multinational chains, consumers are becoming a little more frugal lately. Despite a minor increase in foot traffic, the average order value has decreased by around 3% from the previous year.
One benefit, though, is that Buddy Brew has a range of coffee goods that are available at Whole Foods and Publix. On its website, the chain lists their 12-ounce coffee bags, which generate roughly 24 cups (including its “Cold Brew Roast”) for $18. That works out to about 75 cents each cup. This is in contrast to the $4.75 that its Hyde Park, Tampa, location charges for a 10.5-ounce canned beer or a 20-ounce cold brew that can be bought online and picked up.
Buddy Brew has slightly increased the price of its grocery goods, but according to Ward, sales “have continued to just do amazingly well.”
SOURCE : NBC NEWS
