Coffee Shops & Snack Bars NAICS 722515

Aug 14, 2025 - Tariff on Brazilian Beans

• Brazil, which supplies about a third of US coffee, faces a 50% tariff on exports to the US. The steep tariff took effect on August 6 despite efforts by US coffee companies – including Starbucks – industry associations, roasters, and Brazilian trade representatives to secure an exemption for coffee imports. Coffee shops, which were already facing high prices for beans due to adverse weather conditions in producer countries that have resulted in supply shortages, are bracing for impact. In Michigan, James Defrees, of 517 Coffee Company, said his store’s core blends come from Brazil. When a 10% import tariff on coffee was imposed in April, it added 40 cents per pound to his imports. Now that tariffs have soared to 50%, he fears a nationwide shortage, Defrees told WLNS. The US imports about 24 million 60-kilogram bags of coffee annually, with Brazil accounting for 34% of that volume.
• While Starbucks struggles, smaller upstart coffee chains are succeeding by offering a more premium, coffee-centric experience, founder of the Australian-style coffee chain Bluestone Lane Nicholas Stone said during an interview at the National Restaurant Association Show in June. One reason legacy brands are struggling may be because they’ve pulled back from coffee, focusing instead on refreshers, energy drinks, and other beverages. “I don’t see that demand for more premium coffee going anywhere,” Stone said, adding smaller chains offer an affordable luxury experience that encourages customers to linger, as opposed to fast in-and-out service. Small coffee chains have seen visits grow recently, according to Placer.ai, with much of that growth concentrated in longer 10-plus minute visits, suggesting consumers are looking for something other than speed at many cafes. Matcha and cold brew are other strong opportunities for coffee shops, Stone says.

• A federal judge has dismissed allegations that Peet’s Coffee discriminated against the lactose intolerant by charging extra for non-dairy alternative milks, Bloomberg Law reported in May. The proposed class action suit brought by Keith Gibson Law (KGL) alleged Peet’s violated the Americans with Disabilities Act (ADA) by failing to make accommodations for people with milk allergies and imposing a surcharge despite a lack of meaningful differences between the cost of regular and non-dairy milks. In his dismissal the judge ruled “Peet’s pricing policy is facially neutral and applies equally to customers who are not lactose intolerant but prefer non-dairy alternatives in their drinks.” KGL has filed similar lawsuits against numerous coffee chains, including most recently, Dunkin’, all of which have been dismissed. Amid consumer pushback against surcharges for non-dairy milks Peet’s, along with Starbucks, Dunkin’ and other coffee chains have recently stopped charging extra for non-dairy milks.
• Employment by snack and nonalcoholic beverage bars rose to a new high in May, up 3.5% compared to a year ago, while the average industry wage rose 4.1% over the same period to a new high of $19.09 per hour, according to the latest US Bureau of Labor Statistics data. According to a National Restaurant Association analysis of BLS data, the coffee and snack segment has outperformed the rest of the restaurant industry in job growth. As of June 2025, employment at snack and nonalcoholic beverage bars – which includes coffee, donut and ice cream shops – was 173,000 jobs (or 21%) above February 2020 levels.