1 week Ago By Anna Carlson
Over the past few years, a storm of economic troubles has hit the coffee sector hard, leading to financial woes for many cafés and roasters, with some unfortunately having to shut down or declare bankruptcy . The industry has grappled with surging prices of coffee beans, i nflation-driven hikes in labor and product costs , escalating interest rates on loans and customers' growing hesitance. On August 19, 2024, Colorado Springs-based belvoed coffee enterprise Switchback Coffee Roasters sought protection under Chapter 11 bankruptcy to restructure its business , although the firm kept quiet on the motivations behind the filing.
It was the entrepreneurial spirit of Brandon DelGrosso and his friend that gave rise to the independent roastery, as they embarked on a journey to introduce high-grade coffee to the residents of Colorado Springs. The founding friends acknowledged the challenging journey but expressed their appreciation for the bonds forged with the community. "While there were already some great local roasters, we felt a lack of emphasis on exploring the nuances of acidity and the true potential that coffee had," DelGrosso told The Street.
After receiving a collection of accolades from the Colorado Springs Independent throughout the years since its establishment in 2010, the coffee chain boasts two cafes and a roasting house in Colorado Springs. The roastery's commitment to on-site roasting, single-origin sourcing, and community engagement set it apart. They even introduced a pay-what-you-can option for their drip coffee.
"With determination, we acquired a small eight-pound roaster and set up operations in a garage, focusing on roasting for our immediate circle of family and friends," DelGrosso recounted. Despite its popularity and being hailed as "the best coffee" in the state by Readers Digest, Switchback Coffee Roasters also faced economic turmoil caused by the Covid-19 pandemic. The pandemic saw once-thriving businesses flounder or, in dire situations, close down completely.
Yet, many food establishments are now clawing their way out of the financial crisis they fell into. Corner Bakery, which emerged from bankruptcy under new ownership last year, seems to be experiencing a resurgence. Two years post-bankruptcy, the venerable 34 year old cafe chain has not only refreshed seven of its stores with renovations but is also expanding with new company-run and franchised outlets.
In February, the popular bakery-cafe chain announced a significant uptick in average unit sales after attracting a suite of top executives to revitalize a brand that had faltered post-pandemic and following its 2020 acquisition by the parent company of Boston Market. Come March 2025, SSCP revealed a hefty $6.2 million investment in sprucing up Corner Bakery locations across California and Pennsylvania.
These refurbishments include updated seating arrangements, fresh flooring, a new coat of paint, chic decor, revamped beverage counters, stylish awnings, inviting patio furniture, and the introduction of self-order kiosks. Corner Bakery's chief, Chris Dharod, commented on the enhancements. "We want our communities to know that we're here to stay, and our loyal guests deserve cafes that look and feel special," he said.
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