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May 6th, 2024
The past three years have been challenging for us all and trying to run a small business has never been harder. We have been avoiding writing statements like these as best as we can for the better part of 31 years, ensuring that our coffee remains up to our standards of the highest quality, freshness and taste that we can provide for you.
The truth is we can’t avoid this one and many of our competitors will not be able to hold off for much longer. I have been speaking with many of our clients over the past few years and realize the burden of an ever-dwindling budget and the challenges of running your business in these times. I truly apologize if this will add to your list of troubles.
The people who work in our industry are truly the most resilient people I have ever met because we could never have prepared for situations like COVID and the coffee crisis that we are currently combating. Yet, we are driven to face these hard decisions time and time again and still get up in the early mornings to make our pots of coffee and do what needs to be done.
For those unaware of the current state of the industry, the average cost of Arabica coffee has surged by 33% in the past 3 months and we are currently monitoring this closely. This is due to a number of contributing factors including the Commodity Market hitting all-time highs throughout its entire history leaning towards a dependence on Arabicas as an alternative.
Here's what KMO will be doing:
- On June 3rd, 2024 we will be increasing coffee prices for most products by 9%.
- Our Flavor Pricing will receive a 4% increase.
- KMO will be doing Monthly Specials on specific Origin and Blends in addition to Flavored Specials to try to ease the burden of increased pricing.
- KMO will be introducing and speaking with clients that are open to it, more cost-effective blend alternatives and origin-alternatives that might mitigate some of these costs as well.
We want to work with you and make it through this together. Please give us a call to talk through the questions you may have and work out the finer details of your current coffee offerings and if there are alternatives that are more sustainable for your business. KMO staff will be reaching out in the days to come to analyze how this affects you specifically as we continue to monitor the market closely.
There’s a Great Big Beautiful Tomorrow,
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