As if the Pandemic’s impact on small, local businesses wasn’t enough, one local coffee shop claims that wholesale inflation has exacerbated the problem.
Erika Knoch, of Global Coffee Roasters, noticed that the cost of not only coffee, but also other in-demand items, was increasing.
According to Knoch, it all began during the holidays and has continued as a series of blows to her business.
According to Knoch, she is now paying approximately 30%-40% more for items such as coffee syrups, cups, sleeves, and other common items for a coffee shop. She cites one of the primary reasons for the increase in expenses as the lengthy process of obtaining her coffee beans from several countries, noting that rising gas prices also played a role.
“It literally has to be shipped out; they have to be in ports and containers and they have to be shipped to California, occasionally to New Jersey, and then they get sent to warehouses, where the drivers must collect the coffee and deliver it to me.”
Due to the fact that she is not a franchise that requires a higher volume of goods, Knoch says it is also more difficult for her to negotiate a lower price on items than it is for big name stores.
“Like they go through a lot of stuff and can order things in bulk to get a better price, but we can’t do that because we have to buy things in a certain amount of volume to get a better price.”
As a result, knoch has had to slightly increase her prices to cover expenses, stating that it only applies to items that cost her slightly more overall.
“However, we’ve had to adjust our prices for certain drinks, such as those that require more syrup or are more of a sweet latte.”
Knoch says that despite the difficulties and personal sacrifices, her customers appreciate what she and her staff do and the quality of the drinks they serve.
“I believe that the way we make our coffee and serve our customers demonstrates that we were always going above and beyond for them, and I believe that is what keeps them coming whether we raise our prices or not.”