Why Some Coffee Shops Get More Expensive While Others Are Stuck Discounting
In recent years, a strange phenomenon has become more and more obvious: Two coffee shops on the same street — one keeps raising prices and customers still happily pay, while the other has to keep offering discounts, giveaways, and promotions… yet business remains slow. Most people think the difference lies in “cost” or “how good the coffee tastes.” But the truth is usually this: It’s not about the coffee. It’s about which track you place yourself on. The coffee business has an extremely low barrier to entry. And in low-barrier industries, owners often get pushed into two opposite directions: Either you go up and create value, or you go down and compete on price. The middle ground is the hardest place to survive. 01. Coffee Shops That Can Raise Prices Aren’t Selling Coffee — They’re Selling Irreplaceability If a café can keep raising prices while customers continue to buy, it always shares one trait: People can’t easily replace it with another shop. This irreplace...