While the coffee industry is estimated to be worth about $48 billion annually, the spending is certainly not evenly distributed across the country.
Recent research has sought to assess coffee markets in major cities based on 12 criteria including costs, number of coffee shops, spending on coffee per household, cake shops per household, and more.
According to the calculations of personal finance site WalletHub, the cost of a standard-sized cappuccino is lowest in Hialeah, Florida. The cost of a standard-size cappuccino is three times lower in the Miami suburb than in the Denver suburb of Aurora, Colo.
Overall, however, San Francisco topped the rankings, thanks to having the highest number of affordable coffee shops that were rated above 4.5 by their customers and the second largest coffee and tea makers per capita in the country.
It was a notable shift for a city that in previous decades had had low scores on its Java. “People of the great city are forced to drink liquids,” one of the titles of the San Francisco Chronicle was released once in February of 1963.
San Francisco’s ranking also came ahead of a frequent contender for such awards.
A cup of coffee in Florida, Colorado, and Washington
Seattle, which is often called the coffee capital of the country due to its status as the home of Starbucks (SBUX) took second place, while Orlando, Honolulu and Portland took the top five.
When looking at cappuccino prices alone, Laredo and Arlington in Texas followed Hialeah as the cheapest. For those who cannot imagine life without their daily cup of coffee shop, it is better for them to stay away from Gilbert, Arizona and Minneapolis – after Aurora in Colorado, they have the second and third most expensive cappuccinos in the US
Financial experts often suggest having coffee at home to reduce your daily going out expenses. But while Honolulu has plenty of affordable coffee shops, it ranks first in the country for the highest prices for a box of coffee.
In Miami, it costs less and is half what one would pay in the island’s capital. Hialeah and Raleigh, North Carolina, have cheap packages of coffee, while Columbus, Ohio and Oakland, California follow Honolulu for somewhere among the most expensive.
โSuburban stores tend to do well right now as more and more people are working at home and not going downtown,โ Gregory Stoller, a lecturer in business strategy at Boston University, says in the study. โJust when you thought the market was saturated with, say, Dunkin (DNKN) And at Starbucks, there’s always room to expand this pie.”
Is the latte factor a real thing?
The term “latte worker” was popularized by writer David Bach and first began gaining traction in the 1990s – a latte, or any cup of coffee consumed outside rather than at home, has become a metaphor for small daily expenses that undermine family budgets and can lead to For significant savings when cutting out the daily routine.
While the book was initially seen as genius personal financial advice, the latte factor has also faced criticism – some have stated that it is often used to get away from more systematic problems with inflation and wealth inequality.
It’s also switched, for another generation, from latte to avocado toast โ in 2017, Australian real estate mogul Tim Journer caused a flurry of comments about millennials’ ability to buy homes if they stopped spending on avocado toast.
But while the idea of โโwhether one could get close to the down payment by saving $1,810 per year โ which is an average $4.96 for the cost of cappuccinos across the country multiplied by 365 days a year โ alone, there is no denying that repeat visits to Cafรฉs can make a hole in the pockets of those already cash-strapped. This is especially true if they routinely add $4 pretzels on top of their drink.
“Perception is mostly reality,” Stoller said. “if [people] They overpay for something they might be mentally attached to a higher quality.โ
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