What's happened
As coffee prices rise due to tariffs and climate issues, cafes in the UK and Sweden face closures and reduced consumption. Royal Coffee reports a 10% tariff impact, while Haylynn Canteen in Glasgow announces its closure. In Sweden, fika traditions are changing as consumers cut back on coffee purchases amid soaring prices.
What's behind the headline?
Economic Impact on Coffee Culture
- Rising Costs: The coffee industry is experiencing a surge in prices due to a combination of tariffs and climate-related issues. Royal Coffee's price increase reflects a broader trend affecting cafes globally.
- Consumer Behavior: In Sweden, the tradition of fika is being altered as consumers reduce their coffee purchases. This shift indicates a significant cultural change driven by economic pressures.
- Business Closures: The closure of Haylynn Canteen highlights the struggles faced by local cafes. As costs rise, many establishments may not survive, leading to a loss of community spaces.
- Future Outlook: Without meaningful relief from rising costs, the coffee industry may continue to see closures and reduced consumption, fundamentally altering coffee culture as we know it.
What the papers say
According to Business Insider UK, Royal Coffee has raised café prices due to a 10% tariff impact, stating, "the coffee industry at large is facing an unprecedented crisis." Meanwhile, The Scotsman reports on the closure of Haylynn Canteen, with owner Robbie Morrow expressing gratitude for customer support but acknowledging the harsh economic climate: "Nobody is getting a break at the moment. The climate is brutal." In Sweden, The Guardian highlights how rising coffee prices are affecting the traditional fika culture, with Emma Tomth noting, "Many I know are abstaining from meeting for fika to save money." This illustrates the broader impact of economic factors on social traditions.
How we got here
The coffee industry is grappling with unprecedented challenges, including rising tariffs, climate change, and increased production costs. These factors have led to significant price hikes, affecting both consumers and businesses.
Go deeper
- What are the main reasons for rising coffee prices?
- How are cafes adapting to these changes?
- What does the future hold for coffee culture?
Common question
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What is Causing the Surge in Coffee Prices?
Coffee prices are skyrocketing due to a combination of tariffs, climate change, and rising production costs. This surge is impacting cafes and consumers alike, leading to significant changes in consumption habits and business operations. Below, we explore the main factors driving these price increases and how they are reshaping the coffee landscape.
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