At Kaldi Gourmet Coffee Roasters, we understand that the recent surge in coffee prices is a significant concern for many business owners. We know you're facing immense pressure to remain competitive while maintaining profitability. We also understand that increasing prices is never an easy decision, and it's something we at Kaldi are also facing. We want you to know that we are here to support you while navigating these challenging market conditions.
While coffee pricing is just one factor among many that businesses must consider, we want to assure you that the impact on your overall costs can be minimized with some minor adjustments, alleviating some of the stress from your business. Below are some calculations that we thought you might find helpful.
The "Cups per Pound" Equation
Let's look at the numbers. Here's a simple calculation:
- A single pound of coffee typically yields 35-40 cups of coffee. This number can vary depending on brewing methods, desired strength, and individual preferences.
- A 5-pound bag, therefore, yields 175-200 cups of coffee.
- Let's assume a 5-pound bag of coffee costs $60. This translates to a cost per cup of just $.30 to $0.34.
We get into the mathematical detail on how to calculate your cups per pound in a blog post here.
The Impact of Price Increases
Even with what feels like a significant rise in the price per pound of coffee, the impact on your per-cup cost could be minimal. For example, a $5 rise in price of a 5-pound bag translates into $1 per pound which then translates into $.20 per pot (3.25 ounces of ground coffee) which is a mere $.03 increase per cup.
Example from the Current Market: Kaldi's Groovin' Goat
To illustrate the minimal impact of price increases, let's consider our popular blend, Kaldi's Groovin' Goat.
- Previous Price: $52.95 for 5 pounds, resulting in a per-cup cost of approximately $.27.
- Feb 2025 Pricing: $59.75 for 5 pounds, resulting in a per-cup cost of approximately $.31.
This represents an increase in your coffee cost of $.04 to your cup, which can be absorbed by a minor adjustment to your selling price per cup. By increasing the price of your 8-ounce cup by just $.04, you can offset the rise in cost of coffee beans and maintain your profitability.
Another Option: Explore Other Coffees Within the Region
One of the advantages of shopping at Kaldi.com is our wide selection of coffees from various regions. Within each region, you'll find different coffees at varying price points. For example, within our African coffees, we offer Ethiopian Harrar, currently priced* at $11.78 per lb, and Kenyan AA, priced at $11.29 per lb. Since these coffees originate from the same region, they often share similar flavor profiles. This allows you to explore alternative options within your preferred region to potentially find a more budget-friendly choice while still enjoying a comparable taste experience.
We're Here for You
We value your trust and appreciate your continued support. These are quite extraordinary times, especially within the coffee market. We want to welcome customer feedback by contacting us directly, and we will update this post as necessary from customer viewpoints. If you have any questions or concerns about coffee prices or our products, please don't hesitate to contact us.
*The prices mentioned are from February 2025
Sources:
Ferré, Ines. “Coffee Is in a ‘Perfect Price Storm’—and It’s Finally Starting to Hit Your Wallet.” Yahoo Finance, 13 Feb. 2025, finance.yahoo.com/news/coffee-is-in-a-perfect-price-storm--and-its-finally-starting-to-hit-your-wallet-165111722.html.
