Coffee Shops & Snack Bars NAICS 722515

Dec 14, 2025 - Shift From Arabica to Robusta

• Brazilian coffee farmers increasingly are shifting from arabica to robusta coffee beans due to climate change, rising temperatures, and volatile weather that make arabica harder and more expensive to grow, Fresh Cup reported in December. Brazil is the world’s largest arabica grower and while arabica continues to dominate, robusta production has increased by 81% over the past decade. In just the last growing season, robusta production jumped nearly 22% compared to the previous harvest. As robusta production expands, its quality is improving, creating opportunities for coffee shops to introduce new flavor profiles, lower‑cost blends, and innovative menu items. The shift from arabica to robusta likely means higher arabica prices and tighter supply, which could pressure margins for coffee shops relying on traditional specialty blends. Coffee shops may need to educate customers about robusta’s evolving reputation, moving beyond its historical association with lower‑grade coffee.
• Even though President Trump lifted the steep import tariff on Brazilian coffee in November, coffee prices are expected to remain high, creating ongoing cost pressure for coffee shops, Fresh Cup reports. While arabica and robusta futures briefly fell after the tariff cuts, underlying global factors, such as poor harvests, climate volatility, and supply chain instability, continue to keep prices elevated. That’s bad news for coffee shops, which can’t count on meaningful relief on bean costs in the near term. Persistently high wholesale prices will continue to squeeze margins, especially for shops that rely on specialty arabica. Consequently, shops may need to adjust menu pricing, reformulate blends, or introduce more cost‑stable options like robusta‑forward espresso. Unfortunately for coffee lovers, tariff removal offered only symbolic relief, while real-world costs for cafés remain stubbornly high.

• A battle for the morning daypart is heating up as coffee chains compete to become full-service destinations, not just quick stops for beverages, Restaurant Dive reports. Drive-through coffee chain Dutch Bros has announced plans to expand its hot-food breakfast program nationally by 2026. Many of its stores already serve hot breakfast items, which have driven increased ticket sizes and transactions, helping same-store sales grow by 5.7%. For coffee-shop operators, this trend highlights the importance of diversifying menus beyond drinks: adding breakfast food can boost traffic and spend. It also suggests smaller or independent cafés may need to rethink how they stake their claim in the morning routine, whether by adding breakfast items, improving convenience, or leaning into specialty beverages. As breakfast becomes a stronger battleground, coffee shops that only compete on drinks may see margin and relevance pressure from brands making food a bigger pillar.
• The rise of “coffee shop DJ parties” is creating new opportunities for cafes to expand beyond traditional morning service and tap into the growing demand for alcohol-free social experiences, Sprudge Media reports. With Gen Z and younger millennials drinking less, but still seeking connection, music, and energy, coffee shops are reimagining nightlife through caffeine-fueled gatherings. Events like Toronto’s sold-out Coffee Party series and Atlanta’s tea-fueled DJ sets transform cafes into vibrant “third spaces” where patrons can dance, connect, and celebrate without alcohol. For coffee shops, the trend offers multiple opportunities: extending business hours, attracting new audiences, collaborating with local artists and DJs, and strengthening brand identity through experiential events. Viral social media buzz around these sober parties further amplifies visibility, positioning coffee shops as leaders in a new cultural movement.