Coffee Beans Are Skyrocketing! Are There Still Coffee Shops Daring to Sell Coffee for Just a Dollar?!

McDonald's $1 Coffee: How Long Can It Survive an Era of High Inflation?

Across regions and brands, coffee shops have been pushing their prices upward through this inflationary era. Yet McDonald's in the United States still sells coffee for just $1. How long can pricing that low last when costs keep climbing?

McDonald's says the $1 price covers premium roast coffee and iced coffee in any cup size. With labor, transportation, and raw material costs all rising, the company pays a real price for holding the line — and after all, at a flat $1 regardless of size, who wouldn't order the largest cup?

So the chain could be losing money on every cup. But regular customers rarely buy just coffee: a $1 drink pairs neatly with anything from the all-day breakfast menu, and depending on what else each customer adds, McDonald's may still profit overall.

The Challenges McDonald's Faces

The first is transportation. Most trucks in the American freight industry run on diesel, whose price has jumped 50% over the past year.

Second, coffee prices have repeatedly hit record highs since the pandemic, closely tied to shrunken harvests in producing regions. According to the Coffee Financial Network, drought conditions in Brazil's coffee areas are currently worse than at the same point in 2021 — casting uncertainty over this year's Brazilian Arabica output, and possibly next year's as well.

Rainfall performance in Brazil's coffee-producing regions over the past 30 days

Meanwhile, labor costs keep climbing. Some McDonald's employees in the US earn as little as $13 per hour, and the company has said many store employees will reach $15 per hour by 2024. Per CNN, the US Consumer Price Index had already risen to 9.1% by June 2022, and the pressure to raise wages keeps building.

McDonald's isn't the only retailer squeezed by inflation — yet US McDonald's still sells $1 coffee.

The Global Picture

Holding coffee prices steady in this environment is genuinely rare. On July 14th, a longtime McCafé customer in Sydney, Australia told 7News he had paid A$5.30 for a medium latte that day — at the same store, the same latte had cost A$5.05 the day before.

Globally, soaring oil and energy prices have deepened inflation across countries, pushing chain brands to raise prices and pass part of the burden on to consumers.

Other Examples

McDonald's Canada once sold any-size coffee for a dollar, but that promotion was discontinued. In February 2022 the deal returned — though per multiple Canadian media reports, it was a limited-time offer, and the $1 bought only a medium coffee.

Looking Ahead

How long do you think McDonald's $1 coffee in the US can last?

Image sources: Coffee Financial Network, CNN, Internet

FrontStreet Coffee Recommendation

With bean prices soaring, a quality budget coffee matters more than ever. FrontStreet's Brazil Cerrado Red Bourbon — a classic naturally pulped Brazilian single origin — offers cream, peanut, toasted bread, caramel, and hazelnut notes at a medium roast: rounded, low-acid, and versatile enough for pour-over, moka pot, espresso, or French press.

For something a step up, the FrontStreet Brazil Fazenda Rainha Yellow Bourbon from Mogiana brings a rare sugarcane sweetness alongside fruit and chocolate notes — proof that great Brazilian coffee can still be kind to your wallet even in an expensive year.