During this time, it’s necessary to reflect on what we take for granted. In this case, simply getting coffee with a friend. Now, during this time, individuals are getting their coffee fix using online systems. Coffee has an inelastic demand, as individuals who drink coffee, usually do in a habitual manner.
Since lockdown, packaged coffee sales have soared 24.9% in a four week period with a substantial 73.3% growth over another one week period. Starbucks is seeing a 9.7% increase in package coffee sales despite closing stores, while Keurig increased sales by 18.7%. Now that consumers are forced to make their own coffee at home, these sales are demonstrative of the “pantry-loading” effect. Even though their online sales have increased, what about coffee shops?
Los Angeles indie coffee brand Go Get Em Tiger (GGET) started as a popup and has expanded to 9 cafes in Vernon. Since COVID-19, GGET’s team of 128 employees reduced to just four, forcing them to close half their cafes outright. However, thanks to digitalization and app services, their web sales have increased by 300%. Now, they’re sending morning coffee to hospitals every day this week for underserved essential workers.
Even though local coffeeshops have definitely taken a hit, it’s nice to see that people are unifying even if it’s over a cup of coffee.
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