In addition to the challenges Puerto Rico’s coffee farmers face related to climate change, the coffee industry is experiencing an inflationary moment that impacts the operating costs of local coffee shops, making a cup of coffee cost more. currently.
The situation will become even more complicated when, in the summer, the law banning the use of single-use plastic comes into force, which would lead to a further increase in the price of the product, as explained to THE SPOKESPERSON a coffee shop owner.
According to entrepreneur Érica Reyes Ocasio, the price increase is not limited only to cereals. Now, increases in employee salaries, electricity, water and room rent, as well as the cost of milk and raw materials used to serve coffee, make the drink more expensive.
“I started in 2006, so we’re talking about the fact that four-ounce cups were still selling for 35 cents and the six-ounce foam cup was 75 cents, and I was selling a six-ounce latte for $1.25, ” recalled the owner of Café Colao’ in Old San Juan, whose coffee price today hovers at $3.50.
Given the impact of imported coffee, the coffee farmer also claims that filtering beans from abroad is cheaper, but in her case it is aimed at serving Puerto Rican coffee, which represents 19.4% of total coffee sold on the island.
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“I always had the idea of buying from different roasters here in Puerto Rico and today the average pound of a good regular coffee costs you between 9 and 10 dollars, and at that time I was paying up to 13 dollars,” said Reyes Ocasio, who underlined that previously he had the possibility of serving a more expensive coffee because the costs were not the same as today.
“Two years ago I acquired my parents’ farm, so I also process my own coffee, but it should be noted that the coffee I process, and which it costs me, I sell for a dollar more per pound,” he added.
On the other hand, the entrepreneur underlined that she noticed a decline in transactions, which is why she had to change her strategy to serve the diners who visit the place. You previously underlined that you had customers who came three times a day and, even if they don’t stop visiting the premises, the frequency has changed.
“Seventy percent of a person who drinks coffee at the market drinks at least one cup a day, but they drink that cup in the morning,” said Reyes Ocasio, who also pointed out that the order trend remains in 12-ounce coffee.
That’s why Café Colao’ has eliminated the six-ounce coffee, so the smaller one starts at eight ounces, and has the option of a specialty coffee that the customer who wants it pays top dollar for an additional selection.
Despite the pressure of increases that have forced the coffee shop to raise prices, Reyes Ocasio indicated that the place probably still remains the cheapest in Old San Juan and the metropolitan area, with an average sale of $3.50 a cup.
Minimal changes to keep repeat customers
In order not to lose the market, Naz Crêpes & Coffee has shared with THE SPOKESPERSON For the moment they do not intend to increase hot drinks further, as they depend on the volume of people to generate profits.
However, the owner of the establishment in Carolina, Nathalia Zahra, indicated that the new law that will come into force on June 1, 2024 – to ban the use of single-use plastic – will lead the establishment to change containers and glasses, so that customers could see an increase reflected in the products.
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“When we started it was $2.10, now it’s $2.25. In reality we haven’t increased it much because we have compensated for it with another increase in the price of crepes and other types of drinks, let’s say cold ones, but since normal hot coffee sells a lot and sells a lot in volume, we try not to increase, but yes, we had to increase it, because if we don’t increase it a little it will definitely not be enough, but something that is below the industry average so that people can continue to ask for it almost every day,” Zahra said.
Likewise, the businesswoman claims that coffee sales have not been affected by the price increase, as the difference is 15 cents.
However, Zahra acknowledged that there may be customers who used to shop daily but are now reducing their spending.
“In the coffee shop we always wanted to have 100% Puerto Rican coffee. Yes, Puerto Rican coffee is more expensive than other coffees. For this reason there are many people and many farms that import coffee to mix it with the beans from here and offer it at a cheaper price, but ours right now is from the Guindaleza farm, which is from Juana Díaz’s Terrafe brand. , a family farm, they grow it here in Puerto Rico and they roast it themselves,” Zahra explained of the coffee they get for $8 a pound.
“Coffee costs a lot less, but compared to five pounds, which is the package they usually sell you, it costs 40 dollars, but there are other haciendas that cost you 75 or 80 dollars, it’s normal. There are others that cost more than $100, so it also depends on the coffee you’re looking for,” she added.
2024-01-09 08:00:00
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