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Sarah Charles
--> Taco Bell, a brand synonymous with budget-friendly tacos and late-night cravings, is expanding into premium coffee. Its Live Más Café brings specialty drinks to the $5B coffee market, targeting younger, trend-focused consumers. Fast-food chains added 1,400 coffee outlets in 2023, with Taco Bell joining the race to compete with Starbucks and Dunkin’. Taco Bell is betting on affordable drinks to stand out in a crowded coffee space.
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Spotlight
There is no shortage of coffee shops that label themselves as "specialty" – but the number of coffee shops that serve a cup of coffee that would meet James Hoffmann’s expectations are few and far between. 91% of consumers prefer authentic brands, but misuse of the term "specialty" is eroding trust. Rising YOY sector growth is fuelling subpar cafes prioritising profits over quality. Clear standards are crucial to protect quality cafes and preserve value chains.
As tough economic times hit, the core values of specialty coffee – commitment to quality, sustainability, and fair practices – seem to be getting diluted. Two-thirds of young consumers prioritise ethics, but rapid growth often sacrifices transparency and producer welfare. Mayorga Coffee’s 5x facility expansion shows scaling can align with fair prices and socio-economic impact.
Starbucks, the world’s largest café chain and a buyer of 3% of the world’s coffee, has taken a risky gamble in its approach to coffee purchasing. Starbucks cut coffee hedging from $1B in 2019 to $200M amid a 70% price surge this year. By relying on price-to-be-fixed contracts, Starbucks is shifting risk to an uncertain future. Starbucks and many small to mid-sized roasters are betting on future price drops but risk hefty costs if prices remain high.
In the fast-paced world of specialty coffee, baristas and shop owners obsess over sourcing the finest beans, perfecting brewing methods, and crafting the perfect pour. Cynical memes about cleaning coffee gear flood the internet – but the reality isn’t so funny. Neglecting coffee equipment can lead to harmful bacteria and mould, studies warn. Clean equipment isn’t optional – it protects your business from wear, tear, and unhappy customers.
Colombia’s coffee industry, long celebrated for its exceptional green coffee exports, is witnessing a strategic shift as traders venture into specialty coffee retail. Rising costs and shrinking margins are driving a shift from green coffee exports to domestic retail. Specialty cafés showcase Colombian coffee culture and foster innovation and sustainability.
Coffee prices have surged to their highest levels since April 1977, driven by fears over supply disruptions in top-producing nations like Brazil and Vietnam, and the anticipation of the EU Deforestation Directive (EUDR). While headlines indicate the coffee world is in shock, hasn’t it been a long time coming?
Children consuming coffee is a concept that would be met with either outrage, pride, or a shrug – depending on where you are in the world. Some western influencers are increasingly warning against coffee for kids and adults, but sugar-loaded energy drinks with high caffeine levels are less scrutinised. In markets like Brazil, children drinking coffee is a longstanding tradition. "Demonising" coffee can also disrupt & reshape global markets – giving high-sugar soft drinks the upper hand.
For many, turning a love of coffee into a sustainable career proves challenging. Skilled baristas are leaving specialty coffee for better-paying jobs in sectors like luxury fashion. Luxury brands offer baristas up to €40,000 annually – double what specialty coffee shops pay. Specialty coffee faces quality challenges as automation rises to fill the talent gap.