Gregory’s Coffee Has Resisted Price Hikes but Acknowledges Rising Costs May Soon Leave No Choice
Gregory’s Coffee, founded in 2006 by Gregory Zamfotis in Manhattan, has grown to more than 54 locations across the U.S. and operates a roastery in Queens, New York, sourcing coffee from countries such as Brazil, Rwanda, and Nicaragua. Zamfotis underscores the cultural significance of coffee as a catalyst for social interactions, indicating its prominent role in both personal and professional settings.
However, the coffee industry is currently facing challenges due to a dramatic rise in prices, which have surged by nearly 21% over the past year. Recent data shows that the average retail price for 100% ground roast coffee has reached a record high of $8.87 per pound, up from $7.02 in January. Factors contributing to these rising costs include climate-related disruptions in coffee-producing regions, particularly droughts in Brazil, and tariffs, including a substantial 50% levy imposed on Brazilian coffee.
Despite being an essential part of American culture, most coffee consumed in the U.S. is imported, with Brazil supplying about 35% of the nation’s coffee. In contrast, U.S. domestic coffee production is minimal; Hawaii stands as the top producer with 21 million pounds harvested in the 2024-25 season. In that same timeframe, American consumption reached a staggering 3.3 billion pounds.
Jake Leonti, director of coffee at Gregory’s, highlighted the higher expenses associated with domestic coffee farming compared to sourcing from abroad. Although Gregory’s Coffee has not yet raised prices, Leonti acknowledged that an increase is inevitable due to ongoing costs related to tariffs and production. Prices at Gregory’s vary by location, with a regular cup of coffee costing $3.45 in New York City and $3.15 in New Jersey and Washington, D.C.
Other companies, including The J.M. Smucker Co. and Starbucks, are also bracing for price hikes due to rising green coffee costs. The CEO of The J.M. Smucker Co. has indicated that this will likely be their third price increase this year, whereas Starbucks’ CFO projected that customers may not see price rises until fiscal 2026, thanks to the company’s hedging strategies.
Zamfotis expressed a desire to avoid frequent price increases, aiming to maintain customer loyalty even as costs rise incrementally. He emphasized a focus on business sustainability rather than profit maximization, voicing concern that slight price increases might deter regular customers.
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