This Kansas City coffee shop is fighting to stay afloat: ‘Hard to make a profit’
It’s been far from smooth sailing for Armando Vasquez and Mike Hastings.
Their coffee business, Anchor Island, has survived a pandemic, costly break-ins and vandalism throughout its five-year life. In 2022, a truck smashed through the front of the shop at 4101 Troost Ave.
But when June saw the store’s worst sales ever, the couple began to discuss the possibility of moving or shifting gears altogether — anything to keep it from closing.
“Closing is probably the last thing we could do,” Vasquez said. “At the moment we don’t see that happening yet, but we have considered that in the past.”
Their solution right now is to look for other locations that will garner more foot traffic and tweak the concept. At the moment, they’re planning to still call the spot Anchor Island but pivot to offering more cocktails and food. Coffee will still be a small part of the concept.
“Our goal is to become more of a breakfast and dinner type of place,” Vasquez said. “It’s just hard to make a profit off of coffee anymore.”
The potential new location of Anchor Island is still unclear.
Since putting out a cry for help on social media in late June, Vasquez said he’s heard from many business owners who are in similar financial straits. In the post, Anchor Island encouraged customers to visit businesses before they’re gone.
Vasquez believes many customers are also feeling financial pressure and are less likely to spend extra cash on coffee. While slow business and break-ins have taken a toll, Vasquez said increasing food and operating costs have worsened their financial situation.
Overall food costs have increased 3% to 6% in the past year, according to the Missouri Restaurant Association. Treyton Meyers, a spokesperson for the association, said the average annual increase is about 1% to 2%.
“I wouldn’t say it’s a severely sharp (jump), but it’s more than normal,” Meyers said.
Coffee is especially costly, with beans from many countries being subjected to a 10% tariff. In some cases, it’s higher.
Vasquez said it’s especially costly if shops don’t roast their own beans, but Anchor Island doesn’t have the capacity for roasting.
Keith Davenport, owner of Groundhouse Coffee in Gardner, also told The Star that he’s feeling the pinch of rising coffee prices, which jumped at the beginning of the year. He closed Groundhouse’s second location July 3 due to competition in the area, though he said sales at his main cafe continue to grow.
“Probably 95% to 99% of the coffee is grown outside of the United States because it’s very much on a climate band,” Davenport said. “When we’re talking about international policy, that’s how it can impact a small town in the middle of Kansas.”
Even with costs increasing, Meyers said it’s hard to say whether there have been more closings than usual, and whether rising costs are the sole culprit.
Some other common factors for closings in Kansas City that Meyers has seen: skyrocketing property taxes, crime and costs of labor.
“Our industry is extremely volatile and super competitive,” Meyers said. “It’s very expensive to maintain an establishment, so it’s not uncommon to see high turnover. However, I will say, we have noticed a lot more closures than we would like.”
The good news: Since Vasquez and Hastings put out their cry for help on social media, many customers have stopped by, shared the post and offered words of encouragement.
It makes a difference, Vasquez said.
“If you’re up there and have the capacity to support your local business, go support them.”