this post was submitted on 08 Nov 2024
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Counterpoint: 100 million for coffee in a year sounds astronomical, even for the 120k employees intel has. Like, what are they paying for, doordash starbucks?
That’s $3.33 per employee per work day, assuming 50 5-day weeks per year. Seems a bit high to me, but not exorbitant. If the figure included things that they’re not reinstating (like free fruit) then that would make sense.
You can get over 500g of ground coffee for that price. It absolutely is exorbitant
500 grams of what, though? Folgers?
The current average price per pound (454 grams) of ground coffee beans in the US was double that just a couple months ago, so spending $3.00 per pound would necessitate getting cheaper than average - and therefore, likely lower quality than average, or at least lower perceived quality than average - beans.
The sorts of beans that companies tend to stock (IME) that are perceived as higher quality aren’t the same brands that I tend to buy (generally from local roasters), but they’re comparably priced. For a 5 pound (2267 grams) bag of one of their blends (which are roughly half the price of their higher end beans), it’s similar to what you’d pay for 5 pounds of Starbucks beans - about $50-$60.
Often when a company says “free coffee,” they don’t mean “free batch-brewed drip coffee,” but rather, free espresso beverages, potentially in a machine (located in the break room) that automates the whole process. I assume that’s what Intel is doing.
At $10 per pound (16 ounces) and roughly 1 ounce (28 grams) of beans per two ounce pour of espresso, that means that if each person on average drinks two per day, then that’s $1.25 for coffee per person per day.
However, logistics costs (delivering coffee to all the company’s break rooms) and operational costs (the cost of the automatic machine and repairs, at minimum; or the cost of baristas, or adding the responsibility to someone’s existing job (and thus needing more people or more hours) if just batch brewing) have to be added on top of that. Then add in the cost of milk, milk alternatives, sweeteners, cups, lids, stir sticks, etc..
Obviously if they just had free coffee grounds and let people handle the actual brewing of coffee in the break room, it would be much cheaper. But if the goal is to improve morale, having higher quality coffee that people don’t have to make themselves is going to do that better.