In this episode of the Better Together Arizona podcast, ONE Community President and Co-Founder, Angela Hughey is joined by CEO of Brick Road Coffee, Gabe Hagen, and VP of Business Development at Local First Arizona, Thomas Barr. 

Thomas is a passionate advocate for independent businesses, and Gabe created Brick Road Coffee as a pillar of belonging and inclusivity. Together, they offer insight into the challenges facing local economies amid a tumultuous political climate. 

This thought-provoking and caffeinated conversation emphasizes the vital role of local businesses as a “third space” – a location outside of home or work where people can feel safe and included, find community, and have courageous discussions. 

Gabe breaks down how recent tariffs are directly impacting the cost of coffee and reveals the hidden fees that businesses like his are facing. Get the hard math behind coffee production and the ripple effect that global tariffs have on labor hours, pricing, and the ability to operate. 

Key Takeaways: 

🤗 The power of togetherness: Community and togetherness will be the core strengths needed to combat the current, divisive political climate. 

🧘 The critical “third space”: Local, independent businesses like Brick Road Coffee serve as essential spaces where people find community, connect with neighbors, and engage in meaningful conversations. 

☕ Tariffs driving up costs: Because 99% of US coffee is imported, tariffs significantly increase the cost of brewing. Cost per unit for Brick Road was $5.80 before the tariffs; now it’s $6.75. 

💸 Tariffs impacting profit: The impact of tariffs on a single medium vanilla latte at Brick Road added $0.05 to the production cost, so they were losing money trying to keep prices stable. 

📈 Annual cost of tariffs: Brick Road Coffee projects their annual cost of tariffs to be $3,800 based on selling 215 cups daily. 

🧑‍💼 Ripple effect on labor: To save enough money monthly to offset the annual cost of tariffs, Brick Road may have to cup 21 labor hours which equates to one part-time job. If that math is applied across the Phoenix Valley’s 1,800 coffee shops, that could mean the loss of 210 full-time jobs. 

About Better Together Arizona: Better Together Arizona podcast shares stories that teach us how to value one another as neighbors, to value people who live differently than us, and to seek unity over division. The Better Together Arizona podcast includes people from all walks of life, working in often surprising ways to make a positive impact in the lives of others.

Better Together Arizona is supported by ONE Community and filmed at the Full Swing Studios podcast studio in Midtown Phoenix.  

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