Coffee prices have jumped 21.7% in August compared to the same time last year, marking the biggest price increase since 1997, according to the latest Consumer Price Index.
Local coffee shops are now scrambling to find ways to manage rising costs while keeping their doors open.
At Grind House Coffee in Chula Vista, owner Ron Richie has had to completely rethink his coffee sourcing strategy due to President Trump's tariffs on goods from major coffee-producing countries.
"I'm trying to be mindful of what country the coffee's originating from and what tariff is placed on that," Richie said.
The tariffs include a 50% levy on coffee from Brazil, which is the largest supplier of coffee to the United States. Analysts point to these tariffs as the primary reason for the dramatic price increase.
"Definitely won't be seeing any Brazilian single origins on our lineup for some time ... but I feel like we're doing good still keeping a good variety and being able to manage the cost as well," Richie said.
To adapt, Richie has shifted to primarily using coffee from Mexico, which is exempt from tariffs due to the U.S.-Mexico-Canada Agreement. He places weekly orders of coffee beans that cost between $1.000 to $4,000 a week.
So far, Richie has managed to keep prices stable for customers, with traditional coffee drinks under $4 and specialty coffee drinks under $6.75 for the largest size. However, to absorb the additional costs, he's had to become more strategic about purchasing.
"Pitting my competitors against each other as far as supplies we get like cups and making sure I'm drilling down and getting the best possible prices on our milks, boxes, our lids all that sort of stuff," Richie said.
Despite uncertainty in the marketplace, Richie remains cautiously optimistic that costs will remain manageable so he can continue serving customers.
"You got to kind of roll with the punches and take it week by week," Richie said.
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