By Lindsey Burik and Rachel Posturas · April 24, 2025

“Your latte is a layered masterpiece. The coffee is just the start.” 

Let’s talk about that cup of coffee you’re sipping—or dreaming about.

Whether it’s a silky-smooth latte, a bold cold brew, or a triple-shot oat milk cappuccino with a hint of vanilla (we see you), one thing is true: your favorite cup has gotten a bit more expensive lately. But why?

You’ve probably heard that coffee prices are skyrocketing—and it’s true. Droughts in key growing regions like Brazil, shifting climate patterns, supply chain challenges, and even a global boom in coffee-loving converts from traditionally tea-drinking cultures are all squeezing the coffee supply while demand keeps climbing. That’s a lot of pressure for your morning beans.

But here’s the kicker: the actual coffee in your drink? It only makes up almost 7% (or less!) of the total cost of your beverage.

Yep—your $7 latte isn’t just about the beans.

Let’s break it down:

What’s in the Cup? (Price Breakdown Per Drink)

- Cup + Lid: $0.37

- Espresso Shot: $0.48

- Dairy Milk: $0.50

- Non-Dairy Milk: $1.25–$1.35

- Flavor Shot: $0.35

- Labor & Overhead: $2.90+

- Subtotal:

- Dairy Latte: $4.60 (~65.71%)

- Non-dairy Latte (~66-68%)

- Profit Margin: 

- Dairy Latte: $2.40 (~34.29%)

- Non-dairy Latte: $2.55-$2.65 (~31-32%) 

Every piece of your drink—from the biodegradable cup to the ethically sourced oat milk—is part of the bigger picture. Add in rising costs across the board—milk, sugar, packaging, staffing, rent, power, the list goes on—and suddenly, that $7 doesn’t seem so wild.

Now, let’s talk about local coffee shops. The ones that not only serve up your morning pick-me-up but also:

- Source their beans responsibly (think Fair Trade, Organic, Rainforest Alliance, direct trade relationships)

- Treat their baristas like gold

- Run on eco-conscious values

- Build community through great vibes and intentional spaces

These shops aren’t just pouring coffee—they’re pouring their heart, time, and values into every cup. And being a responsible business in 2025? That costs more. But it’s worth it.

So the next time you’re staring down a $7 latte, think about where your money’s going. If you're going to spend that much on a drink, spend it where it adds value—to the planet, your community, and your day.

Drink coffee that does more than wake you up. Support the people brewing with purpose.