ANGELA WEISS / AFP
- The Blend Coffee and Cocktails filed for Chapter 11 bankruptcy in Florida.
- Coffee remains popular, but the cost of beans and workers is rising.
- Even Starbucks has been cutting costs and closing stores.
Coffee is a growing American pastime. Some two-thirds of American adults, 66%, drink coffee daily, up 7% from 2020, according to the National Coffee Association, a trade group.
Coffee shops are under pressure, however, thanks to rising costs and growing competition. Even Starbucks, the nation’s largest coffee chain, has been feeling the pain. The Seattle coffee giant in September announced plans to lay off about 900 non-retail workers and close about 1% of its North American stores amid declining same-store sales.
Last week, a Florida coffee chain known for its unusual flavors and Instagram-ready “coffee flights” filed for Chapter 11 bankruptcy protection in a federal court. The Blend Coffee and Cocktails, which operates eight locations in Florida, is seeking to continue operating while restructuring its debts under court supervision.
The Blend’s bankruptcy lawyer didn’t return a request for comment about the reason behind the consolidated bankruptcy effort. Court documents listed a wide range of creditors, including landlords, vendors, and tax collectors.
US bankruptcy filings have been increasing since 2021, driven by stricter lending conditions and higher costs. Data from Epiq AACER showed a 7% bump in business bankruptcies last month compared to the previous year, including a 35% jump in small business bankruptcies.
Adding to pressure for coffee shops has been the rising cost of coffee beans: The average price of ground coffee doubled in September from 2020 levels to over $9 a pound, according to data from the St. Louis Federal Reserve.
The increase is being driven in part by global supply constraints, partly due to droughts in Brazil, which produces about 40% of the world’s coffee. President Donald Trump’s tariffs have also restricted coffee supplies in the US.
Labor costs are also on the rise, according to data from the National Restaurant Association.
Here is a list of coffee shops and small chains that have filed for bankruptcy protection since 2024, when coffee prices really started to accelerate. All of them remain in business.
San Francisco Chronicle/Hearst Newspapers/Hearst Newspapers via Getty Images
The Blend Coffee and Cocktails
The Blend Coffee and Cocktails operates eight locations in Florida, according to its website.
The company filed for Chapter 11 bankruptcy protection in November.
Cuppa Austin Coffee Shop
Cuppa Austin Coffee Shop is a single-location coffee shop in Austin.
Its parent company filed for Chapter 11 protection in October.
Red Bay Coffee
Red Bay Coffee operates seven locations in the Bay Area, according to its website.
It filed for Chapter 11 bankruptcy protection in August 2024.
Switchback Coffee Roasters
Switchback Coffee Roasters operates two locations in Colorado, according to its website.
It filed for Chapter 11 bankruptcy protection in August 2024.
Ink! Coffee
Ink! Coffee operates four locations in Colorado, according to its website.
It filed for Chapter 11 bankruptcy protection in June 2024.
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