Coffee Shops & Snack Bars NAICS 722515

Nov 14, 2025 - Soaring Demand, Prices for Matcha

• Matcha prices are soaring due to rising global demand and tariffs on US imports, US News reports. Demand for the powdered tea has skyrocketed around the world, fueled by interest in its health benefits and viral images of bright green matcha lattes on social media, according to USN. Bad weather in Japan, one of the largest suppliers of matcha to the US, reduced this year’s harvest, while the 15% tariff on imports from Japan imposed by the Trump administration is further fueling already high prices caused by shortages. Matcha prices tripled at some Japanese tea auctions after this year’s spring harvest was hit by hot temperatures and US tariffs took effect. Meanwhile, US retail sales of matcha, up 86% from three years ago according to market research firm Nielsen IQ, are straining supplies causing some importers to ration demand.
• 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.
• Coffee shops are struggling to remain open amid soaring prices for coffee beans that are driving up retail prices, WRAL News reported in October. Both megachains like Starbucks and small, independent operators are feeling the inflationary effects as tariffs hit US coffee prices. As of Sept. 29, more than 400 Starbucks locations have closed across the country and the company is laying off workers. While Starbucks says the closures are part of its turnaround plan, they come amid slumping sales and steep increases in coffee bean prices, driven largely by import tariffs on Brazil, Colombia, and other coffee producing nations imposed by the Trump administration. Consumers have reached their breaking point with $6 iced coffees and lemonades at Starbucks, CNN reported this summer.