In early 2023, Fresh Cup conducted a survey of 125 coffee shops across the United States to uncover menu pricing trends. We wanted to break out the prices of different latte sizes in shops around the country. Here’s what we found.
Key Findings
- Latte 10-12 oz price: $4.29 average
- Latte 16oz price: $4.79 average
- Latte 24oz price: $5.23 average
- Flavor syrups add-on price: $0.66 average
Latte Price Trends: 2023 vs 2024
Fast forward to 2024, and new data from Toast, a restaurant technology company, offers an updated and broader perspective on coffee pricing trends. According to Toast’s analysis of transactions from January to March 2024, the national average price for a latte has risen to $5.46. This figure, however, likely includes a wider range of latte variations, potentially incorporating flavored options that our 2023 study priced separately.
The discrepancy between our 2023 findings and Toast’s 2024 data could be attributed to several factors. One notable factor is inflation. Between January 2023 and January 2024, inflation in the United States rose 3.3%. However, restaurant prices in that same period rose 8.2%.
Secondly, Toast’s methodology appears to include all menu items labeled as “latte,” which may encompass specialty and flavored versions, as well as large sizes, potentially elevating the average price. In our Fresh Cup data, we break out individual latte sizes and isolate non-flavored versions for our pricing data.
Toast’s data also provides intriguing insights into regional price variations. Hawaii emerges as the priciest state for coffee lovers, with lattes averaging a staggering $6.69. This is followed closely by Alaska at $6.09, with both states’ high prices likely driven by elevated milk costs and logistical challenges due to their remote locations.
In contrast, our 2023 data showed a more modest national average, even for larger sizes. This suggests that over the past year, there may have been a significant uptick in latte prices across the board, or that the inclusion of specialty lattes in Toast’s data is skewing the average upward.
Interestingly, Toast’s analysis also covers other popular coffee shop offerings. Regular coffee averaged $3.08 nationally, cold brew came in at $5.14, and tea at $3.74. These figures provide context for the latte’s position as a premium offering in the cafe menu hierarchy.
The stark price differences between states highlight the importance of local economic factors in coffee pricing. While Hawaii and Alaska top the charts, states like Nebraska offer more budget-friendly options, with regular coffee priced 31% below the national average at just $2.12.
As we compare our 2023 findings with Toast’s 2024 data, it’s clear that the coffee industry, particularly in the latte segment, is experiencing dynamic pricing shifts. These changes reflect not only inflation and rising costs but also the growing complexity of coffee menus and regional economic disparities.
For coffee shop owners, this data underscores the need for strategic pricing that balances profitability with local market conditions. For consumers, it highlights the varying value propositions across different regions and emphasizes the premium nature of espresso-based drinks like lattes.
As we move forward, Fresh Cup will continue to monitor these trends, providing in-depth analysis of the factors driving coffee pricing across the nation. In an industry as vibrant and evolving as specialty coffee, staying informed about these economic indicators is crucial for both businesses and enthusiasts alike.
