How Much Does That Cup of Coffee Really Cost?
Do you stop for coffee on the way to work every day? How about going out for lunch? Let’s see what that cup of coffee and lunch out really costs. Gird your loins for the truth!
An off schedule post
This is an off-schedule post. That means something different or interesting is going on that warrants paying attention to. So, my friends, read on to find out more!
Introduction
OK, so let me get this out there right up front. Telling someone to gird their loins is not something we typically hear in modern America. It is, however, a common term in the Bible. For today’s purpose, click on the link in Note 1 to see the real meaning, and I think you will be relieved, and perhaps challenged, to find out what it means.
If you’ve taken my course or read my book or even followed the 106-part series of posts where I break the course down into 106 pieces, you may remember what I call the coffee and avocado toast story. I’ve recently noticed how many new and varied coffee shops have popped up around town, and the sight of them has made me remember this issue all over again. Today, we’ll break down what that cup of coffee and even lunch out every day really costs.
But don’t lose the point of today’s post on the story you are about to read. The point is simply this:
Small actions, taken consistently over time, can yield incredible results
And it’s not just investments. Think about this for a minute, and you will see it’s pretty much true in almost all aspects of our lives.
A New York Stock Exchange Story
At many companies, or should I say the better companies, the senior leadership will, figuratively or literally, “go down to the factory floor,” to meet face to face with the workforce. When I was at Spirit Aerosystems (now Boeing) and also at American Airlines, the senior leaders would do this periodically. It’s a great idea because leadership needs to hear what is going well and what's not from the “people who make stuff.” If you are familiar with LEAN Six-Sigma concepts, the Japanese term for this is “Go to the gimba,” or translated, go to the place where work is done. Sometimes these meetings involve one operator on a machine. Sometimes they are held with small groups or at town-hall-type events, depending on the size of the organization. I’ve participated in all these various forms of meetings.
If the workforce is vocal or upset (as in a union-represented organization at contract time), the start of these meetings can be challenging or contentious, as all the gripes and complaints are aired, sometimes with strong emotion. After all that has been vented and is over, the constructive conversations typically begin.
Senior leaders are senior leaders for a reason, and that reason is they are smart people. They know to be prepared to address questions, complaints, or suggestions for good ideas during these times. That is why, when these meetings occur, you will see an entourage of responsible leaders and subject-matter experts accompanying the senior leaders. It sometimes makes for jokes from the folks “on the floor” to see all the “suits” walking around the work area.
And so it was that sometime in the mid-1990s, when I was at American Airlines, I was part of one of these Vice President entourages that traveled to New York City to meet with the folks who worked at the two major airports there. Now, when you have a three-shift, 24/7/365 operation, that means that in addition to the travel time, you’re meeting, literally, at all hours of the day and night with each shift. It’s exhausting, but quite necessary. Besides the goodwill the management gains from meeting with the workforce, good ideas typically come from them and can be profitable as well. I remember on one such visit, an idea came up that, once researched and implemented, saved over $400,000 annually. Sometimes all you have to do is ask the right people and listen to what they say. Yes, that’s an important sentence right there. I hope you got it.
On this particular trip, I wanted to find a way to go to the New York Stock Exchange to watch them ring the opening bell. Mind you, this was before 9/11, and visitors were allowed to do this. Fortunately, I had a window of spare time between meetings with the folks, and I was able to take the subway to do this. The subway exit was a short walk from the NYSE, and I was immediately struck by what I saw as I walked on Wall Street toward the exchange. Of course, you would expect to see large crowds in New York as the workday begins. Mind you, I was on Wall Street, and it’s pretty safe to assume that the majority of the people work in one of the investment organizations that surround the NYSE. What I did not expect to see was so many people who looked exactly alike. “Well, Dave, really now, what does that mean?” Let me describe it to you:
It seems like almost every man was dressed exactly the same. Gray suit, white shirt, red tie, and black Oxford shoes. Because it was cold outside, everyone had a light brown trench coat, generally unbuttoned. But it was not just the dress that made them alike. Everyone (or so it seemed) was carrying a briefcase in one hand and a newspaper tucked under their arm. In the other hand was a cup of coffee and a little brown bag, which I could only assume contained a bagel. Because, of course, it was New York. I could hardly believe my eyes and almost chuckled to myself at what I was seeing. As a former military member, I was reminded of basic training and the times our flight of 50 airmen would march together. All dressed exactly alike and in perfect formation.
Given that, for the most part, what I call frou-frou coffee (that’s coffee loaded up with all the extra additions besides perhaps cream and sugar) did not exist at this time, this coffee was not terribly expensive and came from the same shop as the bagel. Whatever. It was just amusing to me, and as I thought about this post I was going to write, this story came to mind.
But back to the NYSE. I was able to go inside and watch all the pre-opening excitement, then watch some people whose companies were probably being listed on the exchange that day ring the opening bell and cheer. It was exciting to experience that and consider the wealth the NYSE has created for Americans since its first opening in 1792. Yes, you read that right, 1792. It gave me goosebumps to think of the history and the wealth that has been, and is being, made at that historic place. Especially because I had, years before, taken an interest in investments, many of which flowed through the NYSE that I visited that day.
Which brings us to today and all the new coffeehouses
All of which brings us back to how I started this post, and to all the frou-frou coffee shops I see popping up everywhere. How much is a cup of coffee at one of these specialty coffee houses? Let me say I met my neighbor today at a local, not a national chain, coffee place, and we spent over $14.00 on two coffees and one sweet roll. Not the over-the-top ones, not a basic coffee, but about in the middle of the range of coffees they served. For an idea of the bigger national chains’ prices, check out Notes 1, 2, and 3.
Now, this very morning as I am writing this post, it’s Saturday, May 2, and I just watched a news program with the CEO of Starbucks explaining why people would want to purchase one of their new coffees that cost over $9.00, which their CEO calls “an affordable premium experience.” The program I was watching went on to show a post by the New York Post where they roasted (pun intended) CEO Brian Niccol, saying, “This is a guy who remote works from Orange County (California) and then takes a private jet to work in Seattle. He’s out of touch” (Note 5)
Wow. Let’s assume the middle-of-the-road brew for any of these very busy coffee places, and assume a daily coffee is about $5. I hope you consider this reasonable as you look at the menus. And here’s another thing…The times I’ve gone to these places, I’m the only one I see drinking a “coffee of the day,” the low-end cup. I see many people carrying much larger sugar bombs than this. Just bookmark this for a moment as I mature this story and get to the point.
So, if you are like me, you see all of these frou-frou coffee joints, most of which are drive-through only (although I understand Mr. Niccol is looking to encourage more people to linger at Starbucks, as opposed to the previous management, who removed many of the amenities that made folks want to linger).
Now, if you are a curious person, like I am, you have to ask yourself, “How much does this coffee really cost these folks?” To that question, I say, let’s do some math!
Let’s go to math class
If you spend 5 bucks a day on coffee, five days a week, that’s $25 a week. If you work 50 weeks a year (you have two weeks vacation, and we’ll assume you don’t buy coffee out on those days), then that is $1250 a year on coffee. That’s a lot of coin…(Just so you know, ChatGPT tells me that this brew at a premium coffee house is from about $4 for a house brew to over $8 for a specialty brew. The point I want to make is that my calculation for a cup of coffee is very conservative).
Me? I drink a premium coffee blend at home. What does that cost?
I’m not sure about you, but I drink my coffee at home. It’s a really good Italian coffee. Although we have a Keurig, I don’t typically use it; I drip-brew just the amount I want to drink that morning on a higher-end coffee machine. So it’s an excellent cup of coffee, made inexpensively. And I know what you are thinking…Yes, I need to get up about 10 minutes early to make it. Which happens to be an excellent time to do some stretching exercises and any other prep work I may need to do that morning.
Here’s another point I want to make. It’s my personal preference, of course, but hold on as I make the point. The frou-frou coffee joints are working hard to draw people back to their stores later in the day by offering other frou-frou drinks, such as energy drinks and frozen treats. They want you to stop by in the morning, spend 5 bucks, and then stop by in the afternoon to spend another 5 bucks. One such place even experimented with offering alcoholic drinks in the evening to generate more traffic at that time. Time will tell whether they can succeed with this strategy.
What’s the math on home-brewed premium coffee? Well, ChatGPT tells me that after we buy the beans, amortize the equipment, and add cream and sugar, the realistic cost is $1.25 per cup. I think this is a little high, but I’m willing to go with it. That’s $6.25 per week for 5 days. 50 weeks a year equals $312.50.
So, that daily cup of coffee costs me how much?
Here’s what we just did:
The daily cup of frou-frou coffee costs $1250 a year.
The daily cup from home is $312.50 a year. Yes, I concede the point that we are talking about pretty much plain-Jane coffee versus frou-frou coffee.
That’s a difference of $937.50 per year, every year, for coffee from home versus buying it out.
Now, here’s where it gets interesting:
Assume you are 25 years old. You invest $937.50 per year in an S&P Index fund earning 10% (this is the nominal return over the past 100 years, before inflation and assuming reinvestment of dividends). Do this until you retire at age 65 and you have $456,423.57. That’s a lot of coffee (Click on the link in Note 6 to see the compound interest calculator I used).
And then, what if I go out to lunch every day?
Let’s say you go out to lunch every day. You go to cheap places that average $13.00. Let’s do the math to take a sandwich from home instead. $13 x 5 times a week x 50 weeks a year = $3250 a year. Let’s assume you can make lunch for $3.00 a day. The savings now are calculated as follows: $3 x 5 x 50 = $750 a year for bringing your lunch from home, a difference of $ 2,500 a year, for a 40-year total of $1,217,129.53 if you invest the difference between eating out and taking lunch.
So, if you stop for coffee and lunch every day for work instead of bringing them from home and instead invest that money, the total cost (or lost income) for a frou-frou coffee and a sandwich from a restaurant comes to: $937.50 a year savings for coffee + $2500 a year savings per year for lunch out = $3437.50 per year x 40 years (assuming investing $3437.50 savings once a year)= $1,673,553.10 in an investment account. Yikes!
So that’s a lot of jack to save and invest over a career. Given that the median 65-year-old in 2026 has about $200,000 in their retirement account, an extra $1,673,553.10 is a significant boost that will substantially increase their income in retirement savings. But for our average 65-year-old in 2026, it’s a bit worse than it seems.
Using a median retirement balance eliminates skewing from high- and low-net-worth individuals. Note that roughly 40-50% of Americans have little or no retirement savings, and many retirees rely heavily on Social Security, which averages $2,000 per month in 2026. Further, that $2,000 per month is before taxes and Medicare premiums, which could be between $215 and $415 per month. Figuring that withdrawing 4% of that $200K a year for 30 years, plus Social Security income, does not leave much to live on during retirement. An extra $1.6M would be most helpful.
Here’s another benefit from bringing my lunch and coffee every day. Perhaps not one we can measure, but I think you will get the point: Bringing coffee from home and eating a lunch you brought will save you calories, which will better allow you to maintain your weight, which translates to improved health. One more benefit, although some folks might not like it: Not going out for lunch or stopping for coffee gives you time to be more productive, which improves your chance for promotion, which could earn you more money, etc.
And your point is?
Look, here’s the point. I get it, the frou-frou coffee is something we enjoy, and going out to lunch is a pleasurable experience. My point is that costs like this can add up over time, and when many people are looking to cut costs and increase retirement savings, I used this example to illustrate that. Perhaps you’ve never seen the retirement calculator, so that might be something for you. To repeat what I said during the introduction:
Small actions, taken consistently over time, can yield incredible results
Summary
Saving for retirement, watching our weight, and increasing our work productivity so we can improve our performance are things that, I believe, many people want to do. Take this little example and do with it as you wish. If nothing else, I hope it gets you thinking. And maybe taking needed action. You’re welcome.
That’s all for today!
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How Much Does That Cup of Coffee Really Cost?
Afterburner Success Partners
What’s in it for Me
The best thing you can do to live your best life is to be in control of it. That means having a realistic plan and executing it. I hope you have not experienced, and do not experience, any of the conditions I described above. In some cases, it may take professional help, but if you desire to overcome any adverse effects of these issues, you are on the road to bettering yourself.
Call to Action
What do you need to do today?
Recommended Resources
Click the links in the notes below and read them. Buy and read Achieve Your Dreams: A Complete Guide to Live Your Best Life by David Giustozzi (Note 4). Take the course, it’s a very inexpensive investment in yourself.
Up Next
Back to regular posting schedule.
Notes
Please note that as an Amazon Affiliate, I may earn a small commission on the sale of any of these recommended resources.
Gird your loins-Idiom, origin and meaning: https://grammarist.com/idiom/gird-ones-loins/
Starbucks menu with prices: https://www.starbucks-prices.com/p/starbucks-prices.html
Dutch Brothers menu prices 2026: https://allmenus.us/dutch-bros-menu/
Scooter’s Coffee prices: https://www.thirstybear.com/scooters-coffee-menu-with-prices/
Starbucks CEO roasted as ‘out of touch’…, The New York Post: https://nypost.com/2026/05/01/us-news/starbucks-ceo-roasted-as-out-of-touch-over-defense-of-9-coffee-affordable-premium-experience/
Moneychimp Compound Interest Calculator: http://www.moneychimp.com/calculator/compound_interest_calculator.htm
Achieve Your Dreams: A Complete Guide to Live Your Best Life by David Giustozzi: https://amzn.to/3IxEFgy
Everyday Cooking for Everyday People Like Us, by David Giustozzi: https://amzn.to/437OhVQ