Taiwan Chain Cafés Offer Discounts Amid Falling Coffee Prices

Coffee lovers in Taiwan may have noticed fuel and electricity prices creeping up—but not necessarily lower prices at their local café, despite international coffee prices falling sharply. With raw coffee costs down 60% since October 2011, customers are asking: shouldn’t their cup cost less too? Two businesses in Taichung have taken action, offering rare customer rewards in response to shifting market conditions.

In short: OCOLO Coffee Farm is running a “Barista’s Thank You” promotion with 1-for-1 coffee drinks and free desserts until September 15. Chun Shui Tang, a well-known tea house, is giving away a full year of free bubble tea through a points-based promotion. Both offers come amid a 60% drop in international coffee commodity prices over more than a decade.

Why Are Global Coffee Prices Down?

International coffee commodity prices began a steady decline in October 2011, and have now dropped roughly 60% overall. Despite this significant fall in the raw material cost, most cafés in Taiwan have not lowered their retail prices. Roasters and shop owners cite rising costs in other areas—particularly fuel and electricity—as offsetting any savings from cheaper beans.

How One Café Is Passing on Savings

OCOLO Coffee Farm, a self-described small coffee business based in Taichung, is breaking from the trend. Owner Wang Xinyin—who also runs his own overseas coffee farms and imports beans directly—says he can keep his production costs lower. In response, he launched a limited-time “Barista’s Thank You” campaign: select coffee beans and drinks are available as buy-one-get-one-free until September 15. Each purchase also includes a free matcha cheese tart. Wang acknowledges that while coffee bean costs have fallen, other input prices have risen, but he chose to share some of the benefit with customers through this promotion.

Bubble Tea for a Year? How Chun Shui Tang Is Rewarding Fans

Chun Shui Tang, a well-known cultural teahouse, is taking a different approach with a high-reward promotional campaign. Customers who visit multiple outlets and collect stamps by trying designated best-selling items can enter to win a grand prize: one full year of free bubble tea. The promotion uses a modern points-and-stamps system to encourage visits across locations and reward loyal customers. This effort comes as part of a broader trend of creative customer engagement in Taiwan’s food and beverage scene.

What Determines Whether Cafés Lower Prices?

While global coffee commodity prices have fallen substantially, café retail pricing is influenced by more than just green bean costs. Factors like energy prices, rent, labour, and imported equipment also affect the final cup price. Many smaller roasters and café owners choose not to pass on raw material savings immediately—or at all—if other operational costs rise. In this case, OCOLO Coffee Farm’s direct sourcing model allows it to benefit more directly from the commodity price drop and offer customer rewards.

Frequently Asked Questions

How much have international coffee commodity prices dropped since 2011?

International coffee commodity prices have fallen by approximately 60% since October 2011, according to the article. This significant drop in raw material cost has not been widely reflected in café retail prices across Taiwan.

What is OCOLO Coffee Farm’s current promotion?

OCOLO Coffee Farm is running a “Barista’s Thank You” campaign where customers can get selected coffee drinks and beans as a 1-for-1 offer, plus a free matcha cheese tart. The promotion runs until September 15.

How can I get a year of free bubble tea from Chun Shui Tang?

Chun Shui Tang is running a promotion where customers collect stamps by visiting different branches and trying specified menu items. By accumulating enough stamps, you can enter to win a grand prize of one full year of free bubble tea.

Why aren’t more cafés lowering their prices despite cheaper coffee beans?

Many cafés face rising costs in areas such as electricity, fuel, rent, and labour. Even when coffee bean prices fall, these other expenses may increase or stay high, leading most café owners to keep retail prices unchanged. Some, like OCOLO, still choose to offer limited customer rewards.

Does OCOLO Coffee Farm import its own beans?

Yes, OCOLO Coffee Farm’s owner, Wang Xinyin, says he operates his own overseas coffee farms and imports beans directly, allowing him to reduce costs and offer customer promotions like the current 1-for-1 deal.

Is Chun Shui Tang primarily a coffee shop?

No, Chun Shui Tang is a well-known cultural teahouse in Taiwan, famous for its traditional teas and also offering beverages like bubble tea. Its year-long free drink promotion applies to its signature bubble tea.

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