Here’s how tariffs, weather conditions are impacting coffee prices at Lancaster County businesses

• By KATIE KNOL / For LNP | LancasterOnline

At Javateas Gourmet Coffee Cafe in Ephrata, owner Ashley Scheirer said product costs have recently gone up $4 to $5 a pound, making for the biggest increase they’ve seen in 20 years of operation.

June data from the U.S. Bureau of Labor Statistics said roasted coffee prices rose 12.7% compared to the same time last year, and instant coffee prices rose 16.3%. The retail price for coffee was $8.13 per pound in June — an increase of about $1 since the start of 2025.

One of the reasons for the higher price tags is growing tariff concerns.

The U.S. coffee supply is almost exclusively dependent on imported goods. In 2023, Economic Research Service data estimated that about 80% of U.S. unroasted coffee imports came from Latin America, with 35% coming from Brazil and 27% coming from Colombia.

On Aug. 7, Trump administration tariffs on two key coffee bean producers took effect. Brazil’s rate is 50% and Colombia’s is 10%. Any increase in costs at ports is likely to be passed through the supply chain and ultimately land on consumers.

Scheirer said the prices started rising well before the final tariff amounts were announced. Speculation caused suppliers to raise their prices preemptively, she said.

Economic theory suggests that higher prices would decrease demand because some people wouldn’t be willing to pay the inflated cost for the same product. However, Javateas customers haven’t changed their caffeine habits yet.

“I think people are a little bit used to it when the cost of groceries is up across the board,” Scheirer said. “People think everything’s going up. Everyone is concerned about tariffs, but no one generally questions. We don’t raise our prices on a regular basis.”

Supply chain issues impact price

Shalyn Esch, general manager for Latte Luv’s Paradise location, said they typically face small annual price increases — typically several cents per pound. This year, they’ve faced several unexpected spikes exceeding $1 per pound.

Latte Luv primarily sources its coffee from Central and South America, she said. Weather changes, such as droughts, temperature fluctuations and disasters impact crop yields. Wars and global unrest can hurt transportation routes and force businesses to take different paths to get their products to the United States.

“They have to take lengthier routes, which then increases the price in the long run by the time it gets to us,” Esch said. “We’re seeing it’s harder to get coffee where we want it to go, especially in the U.S.”

In response, Latte Luv reevaluated its drink pricing, but not all menu items have seen increases.

“We take it product-by-product and evaluate what the margins are and what we can make a profit on, and then determine if we can make that product at that price or if we’d increase it to make sure employees are paid well and that everything else is covered in the cost of the drink,” Esch said.

Esch said Latte Luv hasn’t seen a change in consumer habits, but some regulars have noted the increase.

Cutting costs elsewhere

At Deposit Coffee Corner in Lancaster, part-owner George Zagas said they’re trying other business strategies to offset a roughly 10% increase in coffee costs. They’re renegotiating with other vendors and slightly trimming staff hours.

“Every business model is different, so as far as we’re concerned, it hasn’t affected our business that much,” Zagas said. “The increase was not that significant — it’s something that we kind of anticipated as everything else goes up. We had to make small, minor adjustments to our prices to cover that difference.”

He said they raised drink prices a few cents and have seen a few customers change their orders, though he can’t definitively attribute the adjustment to their new prices. He said his regulars have been going for smaller sizes or skipping the whipped cream.

Overall, he said Deposit Coffee Corner has focused on providing an experience beyond coffee to keep people coming through the doors.

“Most of the clients that come to us, obviously, coffee is a big part, but we want to think that they come there for us because they like to have a nice conversation,” Zagas said. “We create a nice little hub where we care about the clients.”