“It compels you to evolve,” he mentions. “We need to conduct more business to compensate for it.”
In New Orleans, cocktail venue Cure creator Neal Bodenheimer likewise preferred not to raise menu prices.
“We continue to be a local bar,” Bodenheimer states. “We must ensure our pricing remains fair and competitive.”
Bodenheimer notes he’s modifying portions, such as reducing one deviled egg from each platter or adjusting the measurements for a mixed cocktail. “It’s akin to being in a recording studio and balancing the levels on the master board,” he explains.
Many of Cure’s offerings are imported—German beer, French cheese, and Spanish Marcona almonds, which Bodenheimer is unwilling to replace. He says the tariff impact is shared between the supplier and importer before the customer receives it.
As highlighted in Expert Market’s 2025 Food & Beverage Industry Report, 60% of food and drink professionals indicate they have been directly impacted by tariffs, while 76% of businesses report that escalating ingredient costs have influenced profitability.
For Bodenheimer, there are no domestic alternatives to imported ingredients. “I aim to choose the finest products and provide them to my customers,” he expresses.
Jamila Wright, cofounder of Brooklyn Tea, sources teas from various countries to sell in her cafes and online store, but the cumulative effects of tariffs and increased shipping expenses have complicated her operations.
“Our oolong teas are currently unstable, because Taiwan has stopped shipping to the US due to tariff demands,” Wright states. “That completely alters our menu.”
Taiwan’s postal authority halted the delivery of commercial items to the US after the Trump administration terminated “Duty-Free de minimis Treatment” in August. All imported items valued under $800 became subject to tariffs, according to a Reuters article.
The added costs imply that Wright would need to increase the price of GABA Oolong by an extra $10 per ounce, pushing the cost of a five-ounce tin from $65 to $80.
“A significant aspect of tea culture is storytelling and being able to identify that tea estate or village,” Wright notes. “You lose some of that enchantment when you must go through an intermediary.”
Researchers from Kiel Institute for the World Economy assessed over 25 million shipping transactions and discovered that American importers bore 96% of tariffs while foreign exporters only absorbed 4% of the tariff impact.
In Sacramento, Charley Phung, cofounder of Chloé Cà Phê, brings in coffee and tea from Vietnam without a broker or importer. He claims that purchasing directly from producers has allowed him to manage a 20% tariff.
“We’re genuinely saving a little because we’re buying direct,” Phung states. “However, many of our competitors are being priced out of the market.”
Phung built his business throughout 2024 with the Trump administration’s tariffs in consideration and established his menu prices accordingly.
“We created our pricing so that we wouldn’t need to hike costs,” Phung explains. “Now, other nearby shops are adjusting in response to increased tariffs, whereas we appear just like any other regular shop.”
Wright mentions that online orders helped Brooklyn Tea endure during the initial phase of COVID-19 and continue to provide a significant revenue stream, alleviating the recent profit decline.
“I genuinely don’t understand how people operate a standalone shop without online sales,” she states.
Wright has observed a reduction in demand in recent months as customers alter their spending habits in response to inflation. “People’s willingness for casual spending has diminished,” she remarks. “More individuals are saving for the future at the moment.”
