Disguised Robbery

Shea Baker

Coffee – Nick DeGiacinto

Disguised Robbery: The Upward Trend of Coffee Prices

 As I open the door to my local coffee shop, I am greeted with the enticing smell of freshly brewed coffee and the lively hum of chitter-chatter. While standing in line, I am captivated by the gigantic coffee menu offering an array of milks, syrups, creams, and, most importantly, caffeine. Who knew my options for coffee were so endless? Once I reach the front of the line, I give my name and ask for a grande iced latte with two pumps of caramel and oat milk. The charismatic barista rings me up and makes a funny joke: ¨Alright, your total comes to $6.47; we will have that right out.¨ A few seconds go by before reality kicks in, and I realize the 16-ounce beverage I just ordered is, in fact, $6. Coffee prices in America have risen dramatically over the past couple of years due to fluctuating weather conditions in Brazil, labor shortages, increased costs of ingredients, and the most obvious reason: inflation. Such changes have left coffee shop owners with no choice but to raise their prices, leaving consumers’ pockets empty but their caffeine cravings satisfied. 

Although spending $6 on a coffee may seem justifiable for some, statistically, if a person bought an average of one cup every day, they would be paying $2,190 a year (excluding taxes and the typical tip requested at coffee shops). For reference, $2,190 can cover a round trip to Europe, buy two new iPhone 15s, or 121 cases of beer. Yet, society still normalizes the purchase of the caffeinated beverage. 

Brazil, one of the largest coffee-producing countries in the world, yields an average of 43 million bags of coffee a year. However, in 2021, continuous droughts and heat waves caused abnormalities in the Brazilian coffee plants (Lerman). José Oscar Ferreira Cintra, a fifth-generation Brazilian coffee farmer, described the erratic weather patterns, noting there are ¨moments when it was supposed to be dry, and it’s raining. The opposite also happens. And the

plant doesn’t know how to react. It totally breaks its logical sequence” (Brabbins). The decline in the number of coffee plants harvested resulted in a significant price surge and a decrease in the value of a dollar in the coffee industry. For instance, a pound of coffee that was once $4.56 in 2021 soared to $6.11 in 2022 (McCarthy). This subtle yet impactful $1.55 increase is indicative of the decreased global supply of coffee and escalating demand. In addition to the already inflated prices, labor shortages in coffee shops also play a significant role in the steep prices. Companies must prioritize paying and valuing their employees to maintain a staff and keep the establishment running. However, the additional dollars added to their employee’s wages stem directly from the consumer’s pocket. In recent years, coffee shops have implemented a tip screen that consumers must fill out after every purchase. Before the pandemic, tips were a private endeavor often reserved for sit-down restaurants or outstanding service. However, post-pandemic establishments have implemented imposing swiveling iPads that broadcast your gratuity to anyone within five feet, adding societalpressure to a supposedly ¨private decision.” Societal pressure, combined with the barista’s manipulative death stare from behind the counter, often makes customers succumb to the silent expectation to tip. This strategic tactic leads many people to unwillingly tip an extra $1.20 on a $6 coffee, effectively subsidizing the barista’s hourly wage. Without this monetary contribution from the consumer to compensate employees, coffee shops face difficulty maintaining their workforce. In Bryan Simoes’s “Consuming Lattes and Labor, or Working at Starbucks,” she asserts working as a Starbucks barista is more than a job; it entails an ¨emotional and physical commitment.” Simon highlights adversities, such as the early morning hours, heinous scheduling, and physical/emotional strain from demanding customers that accompany the job.Working five to eight hour standing shifts with minimal breaks does not incentivize employeesto stay. But you know what does? Increased wages. 

Another factor that increases the price of coffee is the additive ingredients. While in the past, people consumed straight black coffee; nowadays the options for add-ins have expanded significantly. Whether it’s a dash of vanilla, extra whip, or oat milk, customers can now customize their drink just the way they like it, but this does not come free of charge. Research affirms that coffee shops will charge anywhere between $.50 to $1 for an add-in (Flink). Moreover, plant-based kinds of milk, such as almond or oat, cost almost double the price of dairy milk, making companies charge extra to coverthe costs (Lerman). By giving consumers endless options, companies give them a sense of control over their purchases, but in reality, it is disguised robbery. 

So why does society still justify the robbery of a $6 latte? For starters, coffee shops serve as a versatile place where people can catch up with friends, get work done, or read a book. The value of the $6 purchase may not seem as harsh considering the amount of time some spend at coffee shops either talking with a friend, tackling emails, or finishing up the latest Harry Potter book. Especially since the pandemic, many people have begun working remotely, making coffee shops function as semi-offices (Stern). Purchasing a latte acts as a trade-off: for $6, you gain access to the coffee shop’s amenities, such as tables, free wifi, and a bathroom. The trade-off effectively lets the consumer rent an office space for just $2 an hour, something that is unattainable through traditional office rentals. 

For many, coffee is a daily morning ritual, regardless of the price. The addictive nature of the substance reinforces this habit and makes people crave it more (Callahan). However, although addictive, coffee is not considered “harmful.” In fact, Harvard research contends that ¨Moderate coffee intake—about 2–5 cups a day—is linked to a lower likelihood of type 2 diabetes, heart disease, liver and endometrial cancers, Parkinson’s disease, and depression… Coffee can reduce their risk of early death¨ (¨Is coffee good or bad for your health?¨). As such, studies like this often make the costly purchase more reasonable because of the reported health benefits. Additionally, when comparing coffee to other addictive substances such as cigarettes and alcohol, consumers may find coffee as the preferable option. With the average cost for a pack of cigarettes in the U.S. being $8, caffeine is seen as the more affordable option as well (Carter). Unlike cigarettes and alcohol, which have short and long-term detrimental risks, coffee provides sustained energy without harmful effects on human health.

According to the U.S. Bureau of Labor Statistics, prices for coffee in 2018 were significantly higher than in 2000. Prices shot up with a 26.95% increase, accounting for a $5.39 difference in the value of coffee, averaging a 1.3% inflation rate each year (Munro). Considering the drastic yet consistent price increase over 18 years, one can only expect prices to keepinflating. But at what cost will consumers boycott coffee shops and start making their coffee at home? For some, this may be an easy switch, but for others, coffee is not just something they drink but rather something they experience daily. 

Works Cited

Brabbins, Rachel. ¨Climate change poses threats to Brazil’s coffee growers.¨ Diálogo Chino, 2
October 2023. Web. Accessed 7 February 2024. www.dialogochino.net

Callahan, Alice. ¨How Much Coffee Is Too Much Coffee?¨ New York Times Magazine,
September 6, 2023. www.nytimes.com

Carter, Rebekah. ¨A Guide to Cigarette Prices by State in 2023.¨ MoneyZine, 17 October 2023.
Web. Accessed 7 February 2024. www.moneyzine.com

Flink, Tanya.¨Here’s How Much Extra You’re Going to Pay for Dairy-Free Milk at These Top 

Coffee Shops.¨ VegNews, 24 August 2023. Web. Accessed 9 February 2024.

 www.veg.news.com

Lerman, Rachel. ¨WHY DOES MY LATTE COST SO MUCH?¨ The Washington Post, 10 

November. Web. Accessed 9 February 2024. www.washingtonpost.com

McCarthy, Kelly. ¨Coffee prices expected to rise after drought, frost impact plantations in 

Brazil.¨ ABC News, 22 August 2022. Web. Accessed 8 February 2024. Abcnews.go.com

Munro, Cait. ¨The Rich History Of Your Overpriced Latte.¨ Refinery29, 27 September 2018. 

Web. Accessed 11 February 2024. www.refinery29.com

Simon, Bryant. “Consuming Lattes and Labor, or Working at Starbucks.” International Labor

and Working-Class History, no. 74, 2008, pp. 193–211. JSTOR, www.jstor.org. Accessed

 9 Feb. 2024.

¨Is coffee good or bad for your health?¨ Harvard. www.hsph.harvard.edu

Stern, Gary. ¨What The $5 Cup Of Coffee Means For New York City.¨ Forbes, 30 November 

2023. Web. Accessed 4 February 2023. www.forbes.com