For paid subscribers: Troubled coffee companies now have a new way to escape their problems: invest in cryptocurrencies and pray that the line keeps going up.
While Starbucks tries to return to its coffeehouse roots, a new wave of cafes spreading across the United States show how to really build a welcoming third place.
Hello, and welcome to the Roundup. Every week, I read all the coffee news and write about the best bits for Fresh Cup Magazine. Then, I summarise those bits for you in this newsletter.
This week, we're exploring news of tariffs, acquisitions, and marketing fluff (so pretty much the same as every week).
Here's what happened:
Look, nobody knows what's going to happen, and it's becoming clearer every day that the Trump administration has no idea what it's doing and is just making these tariff decisions up as it goes. See, for example: a few days before the 50% tariffs on coffee imports from Brazil to the United States were due to go into effect, the U.S. Commerce Secretary Howard Lutnick hinted at the possibility that coffee might be exempt. "If you grow something and we don’t grow it, that can come in for zero", he told CNBC. However! This only applies to countries with whom the U.S. has negotiated new trade deals, such as Indonesia (and not, of course, Brazil).
This next story is so Pourover-coded that three different people messaged me about it: A private equity firm is acquiring California-based Philz Coffee for $145 million. Philz used $75 million in venture capital funding to grow to over 70 stores nationwide, and its board members and those VC firms will receive payouts from the sale. However, its employees also invested—some putting in as much as $40,000—but because of the way the company's stock is organised they could lose all of it. "Those who hold common stock, like employees who bought stock during or after their years at the company, will see their stock canceled under the terms of the agreement, making those investments effectively worthless", wrote Jessica Blough for Mission Local.
According to a totally-not-a-PR-campaign survey by the home appliances maker Philips, 47% of Gen Z are so intimidated by baristas and the very idea of ordering a coffee that they won't even enter a cafe. According to The Independent—which didn't link to the survey or tell us any details about how it was conducted—7% of respondents "admitted to suffering from ‘Baristaphobia,’ or being too scared to even approach a barista". They much prefer to use mobile ordering/collection, or just make coffee at home (and wouldn't you know it, Philips sells home espresso machines).
For more on all these stories, plus a union victory for Blue Bottle Coffee workers in California, check out the full roundup over at Fresh Cup Magazine:
If you missed it, you can check out my latest deep dive, exploring the rise of Yemeni coffeehouses in the U.S. and all the ways they are showing Starbucks how to truly build a third place:
Paid subscribers will receive a new bonus article this Friday, but until then it's goodbye from my friend Angela's cats Jun, Clem, and Mack (I am not 100% sure who is who):
Thanks for reading! If you'd like support my work (and get extra bonus articles) you can become a paid subscriber to The Pourover:
I'm the creator and writer of The Pourover. Based in Scotland, I have over a decade of experience in the specialty coffee industry as a barista, roaster, and writer. Ask me about coffeewashing.