Local coffee shops face price hikes

Boulder County coffee shops and markets are raising prices as global coffee shortages drive costs to record highs. The Old Oak Coffeehouse in Niwot recently increased prices, adding about 50 cents to basic drinks such as drip coffee, espresso, and americanos.

"This is a very sad, frustrating and frightening time for us," said Old Oak owners Michael Tomich and Patty Machen, who opened their shop at 136 Second Avenue in 2017. Their supplier, Boulder-based Silver Canyon Coffee, recently raised wholesale prices significantly due to worldwide coffee shortages.

The global price surge stems from severe weather affecting major coffee-producing regions. Brazil, the world's largest arabica bean exporter, faces a devastating drought, while severe drought followed by heavy rains unusual in Vietnam has damaged robusta bean crops. As a result, coffee prices hit $3.30 per pound in mid-December, breaking a record set in 1977.

For The Old Oak, coffee isn't the only challenge. "We're dealing with increased utility costs, higher labor expenses in Boulder County, and the ongoing egg shortage," Tomich explained. This combination of pressures has led to the first plateau in sales in the coffeehouse's eight-year history.

The coffee industry's troubles extend beyond local shops. According to the U.S. Department of Agriculture, arabica beans account for approximately 57% of global coffee production. The recent drought in Brazil has not only devastated this year's harvest but could potentially threaten next year's crop as well. Robusta beans grown in Vietnam, commonly used in instant coffee blends, represent the second most popular variety globally.

Niwot Market has also felt the impact, reporting a 10-15% increase in their coffee costs, translating to about one dollar more per bag. "We're seeing price increases across the board," said Alison Steele, store manager and co-owner of Niwot Market. "It's not just coffee - eggs have gone up dramatically, and we're seeing increases in chicken prices too," she said. Niwot Market is also facing challenges with product availability, and not being able to purchase the quantities of products that they have in the past.

WiNot Coffee Company has experienced a relatively modest 7% increase in coffee costs. However, according to owner Chris Warner, this increase is small compared to other price hikes the business has faced.

"We've had to increase prices three times over the last 12 months," Warner said, noting that products containing eggs and dairy have seen more significant price increases.

Despite these price changes, Warner reports that customer numbers have remained steady. He expects business to improve as the weather gets warmer and more people venture out.

Local businesses are working to maintain their community presence despite these challenges. The Old Oak Coffeehouse, which Tomich and Machen opened after leaving their teaching careers, has always prioritized creating a warm, inviting space for the community. "Our specialty drinks like lattes and mochas won't see the full 16% increase since they contain other ingredients that haven't risen as dramatically in price," Tomich noted.

Silver Canyon Coffee, their supplier since day one, has been a crucial partner in maintaining quality despite the price increases. "They're wonderful to work with, they maintain all of our equipment. We wouldn't go with any other roaster." said Tomich.

Tomich boasts about their customers and the fact that they have been incredibly supportive. "They tell us the community we create is most important to them, and they want to continue supporting us," he said. This sentiment is echoed throughout Niwot, where the community has maintained its commitment to shopping locally despite rising prices.

As local businesses monitor these price increases over the coming months, the long-term impact on customer behavior remains uncertain. However, many local coffee drinkers say they'll continue buying their daily brew regardless of cost, valuing both the product and the welcoming environment these local establishments provide.

For now, businesses like The Old Oak Coffeehouse, Winot Coffee, and The Niwot Market continue to adapt to these challenges while maintaining their role as vital community gathering spaces. As Tomich observed, "In five to six more months, we'll know if this is truly impacting customers coming in and buying." Until then, they remain grateful for their loyal customers and the strong community support that has helped them weather previous challenges.