Why is everything sold at Matto coffee shops in NYC just $2?!?

Question

Our office building just got a Matto in its lobby, and everything they sell is $2 — and I do mean EVERYthing: iced lattes, sandwiches, these truffle brownies I can't stop eating. At first, the miser in me was too excited by this turn of events to spend much time questioning Matto's business model, but now I'm having a major Joyce in 'Stranger Things' moment and I want to know HOW THIS IS POSSIBLE.  This afternoon, I asked the cashier how they were able to sell everything so cheaply, and she said it's because they're 'so busy, they sell enough to offset the cost (or lack of cost), and they use an in-house bakery that supplies all 12 manhattan locations.' THIS IS NOT SUFFICIENT EXPLANATION FOR ME. I mean, they even ask you whether you want a 'regular or large' coffee when both items cost the exact same price because, again, EVERYTHING IS $2. Clearly there is little to no logic happening here and I just want answers as to how an enterprise like this can be financially viable. Theories/conspiracies welcome.

Anonymous · Answer

Coffee is super cheap to make. Expensive coffee is ripoff coffee. As for the baled goods.. I have no idea.

I bought a yogurt there ($2) that would've cost me like $5 across the street.

In conclusion, I think it's aliens.

JasmineShirey · Answer

Jealous! There are no Mattos where I live! As long as they are paying their employees fairly that sounds soo ideal.

Anonymous · Answer

My theory is that because it's a $4 min to use credit cards this makes people buy more OR forces them to use cash which means more $ going directly to Matto since there's no credit card fees....but I am also strangely curious

Anonymous · Answer

It follows the same logic as the $1 pizza slices. They focus on quantity and realistically you buying a $2 coffee means you'll also buy that brownie too. They usually do have in house bakeries that can mass produce things for less.  They look at it as a mass approach.

Tami Wolf · Answer

I don't understand it either, but they need to come to DC!

Anonymous · Answer

My theory is it's all based on volume sales. In general, their cost of goods can't be THAT high when you look at what they're selling and they're buying product wholesale. Of course there's overhead and all of that, but since everything is $2, it's all about volume and offering the same good or service less than your competitor.  Despite its convenience, wouldn't you rather spend $2 on a coffee then go next door and spend $4 for the same thing?

Anonymous · Answer

P.s. there's a Reddit post suggesting there may be a tax angle here, but that's the most I can find online: https://www.reddit.com/r/AskNYC/comments/71jwdg/whats_the_deal_with_espresso_matto/

Anonymous · Answer

I always wonder this too.... I was wondering if it somewhat of a 'trick' since credit card minimum is $5 (and most people carry cash around nowadays) so they draw you in by saying everything is $2 but then when you get there you end up spending more to meet the minimum???

Yehoshua Winter · Answer

my guestimation is that 150 purchases per day would make it worth keeping open

Karen Eisengruber · Answer

Sounds like an investigative journalism opportunity, Liv! Keep us posted on what you find out!

Why is everything sold at Matto coffee shops in NYC just $2?!?

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