Denison cafe deals with wholesale coffee price hike - KTEN.com - No One Gets You Closer

Denison cafe deals with wholesale coffee price hike

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DENISON -- Some Starbucks coffee drinkers are now paying a little more for their cup of joe.

The company announced a price hike in June. Drought in grower nations is to blame.

Local cafes are feeling the effects, too, but one store is getting creative to avoid passing the increase onto customers.

James Green says he visits CJ's Coffee Cafe in Denison at least three times a week. It isn't just the taste that keeps him coming back, as opposed to going to Starbucks.

"This is closer and more convenient and not nearly as crowded," Green said.

For others, cost is a factor.

Prices at CJ's are cheaper than most chains even with a recent increase in the wholesale cost of coffee.

Owner Nancy Gentry says coffee and espresso beans have increased by 50 cents per pound in the past year.

"We started making adjustments in light of that," she said.

Gentry says her roaster warned her about the price hikes ahead of time allowing her to grind out ways to absorb the added cost.

"We don't want to think about our first move just being to raise our coffee prices and put it all on the customer," she said. "So we started doing things like staying open late. We stay open now until 10, and we do live music on Fridays and bring your own wine nights and things like that."

Drought and a fungus outbreak in Costa Rica, where the beans grow, are being blamed for the price increase.

"If you plan ahead for things and you pay attention to the market, which most of your small guys have to, it works," customer Rob White said.

"They call it a drought. I call it a jab," Green said.

While the cost of his caramel macchiato has remained the same, Green says having to pay a few cents more would do little to change his habit.

"I don't spend a whole lot of money, but I do spend money on what I want," Green said.

Starbucks increased prices in late June.

The cost of some drinks went up between five and 20 cents.