With consumers increasingly squeezed by the high cost of living, Matto Espresso is turning heads in the Big Apple with its $3 coffee menu. Founded in 2016, the small-format operator has scaled to 38 stores in New York and has its sights set on reaching 300 US sites across the US within five years. Co-founder Jennifer Maman speaks to World Coffee Portal about how Matto’s low overheads and focus on affordability enable it to stand out in one of the world’s most crowded coffee hotspots
Matto is seeking new investment in 2025 with a view to expanding its small-format coffee shop concept nationwide | Photo credit: Matto Espresso
In a city where a latte can set you back $7-plus, one chain is pushing back against sky high coffee prices with a business model that embeds affordable quality at its core.
Jennifer and Moshe Maman founded Matto Espresso in 2016 alongside their business partner Shlomi Levi after being inspired by Italy’s renowned coffee culture, where €1 espresso and artisanal pastries are a daily staple.
After taking a career break to raise her children and keen to create ‘something tangible and revolutionary’ after a career in equity marketing, Jennifer Maman utilised skills honed from her professional journey and motherhood – especially ‘making challenging ideas approachable and actionable’ – to build Matto.
From crunching the numbers at Morgan Stanley, Maman developed a system to simplify standard operating procedures and training programmes for Matto’s franchisees, with the aim of making running a coffee shop as straightforward as ordering a $3 coffee from the chain’s app.
With the business riding high in New York’s competitive coffee shop market, Matto is seeking new investment in 2025 with a view to expanding its small-format, affordable – and high-quality – coffee shop concept nationwide.
How has trading in New York changed since you founded Matto Espresso?
Since 2016, New York City’s coffee scene has notably expanded despite a population decline from 8.4 million to 8 million. There are roughly 3,700 coffee shops in New York, with nearly 40% being independent or locally owned. As a result, coffee shops per capita have actually increased, reflecting a stronger emphasis on high-quality and artisanal brews. New Yorkers have more specialty coffee options than ever before, signaling the continued sophistication of the city’s coffee culture.
Coffee has also become very expensive amid rising costs and inflation. The average price of a cup of coffee in the US has increased 77% over the past four years from $3.08 to $5.46, driven by higher costs and overheads across numerous supply chains. The price of arabica coffee is at its highest level since 1977, while the price of the cheaper robusta has risen by over 130% over the last four years.
At the same time, rental and utility costs in New York have risen, and the minimum wage has increased 52% since 2016 to $16 an hour.
Away from costs, the adoption of mobile ordering apps and digital payment systems is gaining traction. Currently, 53% of all Matto Espresso orders are placed via the mobile app.
“While other brands rely on short-term deals and discounts, we’re leading the way with long-term affordability and a customer-friendly approach”
What does it take for coffee shops to succeed in New York?
Customers in New York have access to countless coffee options, so offering consistently high-quality coffee and friendly service is essential. Beyond that, you need a great location, as foot traffic often dictates success, and a unique brand identity. Whether it is a focus on sustainability, affordability, or a unique atmosphere, a clear identity and compelling mission helps attract and retain customers.
At Matto, we focus on small-footprint stores and efficient operations. Speed and efficiency are increasingly important with many customers on tight schedules. Streamlined operations, mobile ordering and quick service make a big difference.
How does Matto deliver a premium coffee offer at a lower price point than many competitors?
The quality of our product is ensured by our partnership with one of the largest coffee roasters in Italy, which has a long history of roasting sustainable, ethically sourced beans. This relationship allows us to provide our premium product at an unbeatable value.
Another key aspect of our cost-effective strategy is our central kitchen, which produces high- quality food for all Matto locations. This approach allows us to maintain strict quality control and manage food costs effectively.
Our stores are designed with compact footprints, reducing both rent and operational expenses. By combining operational efficiency with a commitment to excellence, we’re able to deliver exceptional value without compromising the quality our customers expect – and pass some savings on to them.
How does Matto use digital tools to streamline and optimise operations?
Matto has invested in a proprietary mobile app to improve the consumer experience and to create efficiencies in our operations. The Matto App uses an algorithm that streamlines order intake during high-volume periods, enabling us to provide quick and friendly customer experiences while reducing labour costs.
This technology also enhances convenience for our customers, making their experience with Matto seamless and efficient. Additionally, we leverage a unique partnership to implement advanced inventory management tools, which helps us minimise food and beverage waste while maintaining control over our margins. Together, these tools ensure operational efficiency, customer satisfaction and sustainable growth.
Do you see a wider pivot towards affordability in the US coffee shop market?
So far, most major coffee chains haven’t truly lowered their everyday prices. Instead, they’ve introduced more promotions and budget-friendly options without fundamentally shifting toward real affordability. At Matto, we’ve taken a different approach by offering consistently lower prices – 60% of our menu is priced at just $3 when ordered via our app. We’re providing a premium coffee experience at a fraction of the cost, which positions us advantageously in today’s climate of rising inflation and economic uncertainty. While other brands rely on short-term deals and discounts, we’re leading the way with long-term affordability and a customer-friendly approach.
Will your approach be different in other US regions?
We’re aiming to grow into a
300-store chain nationwide, and achieving this goal requires high adaptability. Our flexible business model is already evident in New York, where we operate from traditional storefronts as well as kiosks and mobile carts on college campuses. In other markets, we may introduce new formats to meet the unique demands of each community, such as drive-thru stores in suburban areas.
Every time we find ways to lower our operational costs, we seek to reinvest savings back into enhancing the customer experience and keeping costs low. From upgraded store designs to more convenient service models, these improvements will reflect our promise to offer exceptional coffee to everyone, at a price that won’t break the bank. Our approach may evolve to suit local preferences, but our dedication to accessibility and premium quality products will remain the same.
Jennifer Maman is Co-founder of Matto Espresso