Tag: consumer spending

Russian Coffee Shop Purchases Down 7.3% in 2025

Posted on by Qahwa World

Moscow, Russia — Qahwa World

The number of purchases at traditional coffee shops across Russia fell by 7.3% year-on-year in the January-October 2025 period. This data, compiled from a joint study by fiscal data operator Platform OFD and the self-service coffee chain Tochka Chernogo, highlights ongoing traffic challenges in the food service sector.

Revenue Rises Despite Fewer Transactions

Despite the drop in customer visits, the overall turnover (revenue) for coffee shops actually increased by 10%. This seemingly contradictory growth is attributed to a significant jump in the average check, which grew by 14.4% to 412 rubles.

Key Reasons for the Traffic Decline:

Declining Purchasing Power: Experts believe the primary cause of the falling traffic, which has been observed for a second consecutive year across the catering industry, is the decrease in the population’s purchasing power.

Shift to Cheaper Options: A segment of consumers is shifting towards more economical alternatives, including:

Fast Food: The fast-food segment saw a traffic increase of 3% in Moscow, according to Focus Technologies.

Retail Coffee Points: Retailers are posing serious competition by actively developing self-service coffee points within stores and opening their own cafe formats.

Nataliya Savostina, Marketing Director for Shokoladnitsa Group, noted that consumers who are always looking to save money are the most affected and are particularly sensitive to price changes.

The Rise of Self-Service Coffee

In contrast to traditional cafes, the self-service coffee point category demonstrated notable growth:

Transaction Growth: The number of checks at self-service coffee points rose by 9%.

Slower Check Growth: Turnover only increased by 7% due to a more modest rise in the average check of 4.9% (to 107 rubles).

Sergey Kaletin, COO of Uvenco Group, stated that demand for self-service points has been rising over the past five years. However, while affordable, the self-service model cannot yet offer the ambiance and unique experiences of a full-service café. For instance, at Vkusvill, purchases of coffee drinks in their “café” format grew by 38.5%, compared to just 0.3% in their self-service points.

Industry Strategy and Outlook

Coffee shops are forced to adjust prices to compensate for the outflow of visitors and rising costs. This includes optimizing cost structures and growing the average check not only through price increases but also by adjusting the product assortment. For example, Shokoladnitsa Group is maintaining prices for coffee subscriptions to sustain demand.

Experts predict that future development in the segment will be determined by economic factors and consumer purchasing power, which will continue to drive the choice between a traditional café and a more cost-effective self-service option.

CNN: Coffee Prices in the US Are Unlikely to Fall Anytime Soon

Posted on by Qahwa World

New York — Qahwa World

CNN reports that hopes for lower coffee prices in the United States remain slim, despite the Trump administration’s recent signals about reducing tariffs on goods not grown domestically, including coffee.

According to the network, Treasury Secretary Scott Bessent told Fox News that “substantial announcements” are expected in the coming days regarding potential tariff cuts on imports such as coffee, bananas, and other fruits. CNN notes that his comments amount to an implicit acknowledgment that the tariffs previously imposed have raised costs for American consumers — a point the administration had long disputed.

However, CNN emphasizes that even a full rollback of coffee tariffs would be unlikely to bring significant price relief. Retail coffee prices have risen about 20% year-over-year due to two major factors:

Highly volatile weather that has disrupted harvests of a crop that is already labor-intensive and difficult to grow.

Tariffs imposed by the Trump administration on the world’s largest coffee exporters — Brazil (50%), Colombia (10%), and Vietnam (20%).

The network adds that coffee production is limited to specific regions of the world, making domestic expansion impossible.

Despite rising costs, CNN, citing data from the National Coffee Association, notes that American coffee consumption has not declined. Coffee is viewed as both essential and a small luxury consumers are unwilling to give up. As long as demand remains strong, businesses — from major chains like Starbucks to local cafés — continue to maintain higher prices.

Alex Susskind, a professor at Cornell University, told CNN that in business, “once you take price increases, you tend not to give them back,” suggesting that cafés are unlikely to lower prices even if tariffs disappear. Some modest relief may appear in grocery stores, where mass-market brands face more price-sensitive buyers.

CNN concludes that lowering tariffs on coffee will not meaningfully shift public sentiment. Larger economic pressures — such as housing, energy, and healthcare costs — are the real drivers of Americans’ concerns, far more than the price of a daily cup of coffee.