Why Coffee Shops Defy Logic But We Keep Them In Business

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If we all acted purely on logic, coffee shops would be out of business. Is that likely to happen any time soon? Don’t bet your latte on it.

Here’s why, using the numbers for my own favorite brew. A cappuccino with oat milk, it costs around $5.50 at a coffee shop. Multiplied by seven, that’s $38.50 a week. Since no one goes to a coffee shop every day of the year, let’s round that down to 44 weeks or 308 days. That’s still $1,694 a year spent on coffee.

Based purely on the numbers, it would make sense instead for someone to spend $1,060 on a Breville Barista Touch. It’s nice enough to make great cappuccinos but not so pricey that it feels like a midlife crisis. After that one-time cost, each cappuccino made at home would cost about $1.50. That covers the coffee beans, oat milk, and a little self-satisfaction. Over those same 308 days, you’d spend $462, which means you’d save $1,232 a year.

Over five years, you’re looking at $6,160 in savings—$5,100 if you subtract the cost of the coffee maker. That’s a nice chunk of change. If logic were in charge, every coffee lover would be saving cash by drinking at home. Here are some reasons why we don’t.

Status Quo Bias. Many people are regulars at the same coffee shop. The barista knows their name and starts their order when they walk in the door. Even knowing the financial benefits, it wouldn’t be easy to change that comfortable routine.

Instant Gratification (I Want My Coffee Now). Making a cappuccino at home takes effort. Grinding the beans, steaming the milk, and cleaning up afterward is a whole process. Going to the coffee shop feels easier and faster—even if the process of going to the cafe, waiting in line, and waiting for your order might actually take longer.