Are K-Cups Cost Effective?

K-Cups are definitely cool, but are they worth the price? We put the following analysis together to help you decide.

Although not everyone can agree on what a cup of coffee is worth, we took a look at 3 common scenarios:

1. Buying a large cup of coffee per day from the local neighborhood coffee store,
2. buying the same type of ground coffee for preparation in a standard coffee brewer, and
3. purchasing the same type of coffee using the Keurig K-Cup single serve coffee system.

To ensure an “apples to apples” comparison, we looked at prices for the 3 different types of purchases using a regular blend of Caribou coffee. We assumed a purchase of $50 or more in order to get free shipping, just to make things even.

When using a signature Caribou blend of ground coffee, which sells for $32 from this web site, the total cost is 16 cents per cup. This was the lowest cost option.

When purchasing a 24 count pack of Caribou blend K-Cups for $11.45, the total cost is 48 cents per cup, the second lowest cost option.

Finally, if you decide to stop by your local Caribou store and order a small signature blend coffee, you will pay around $1.50 per cup – clearly the most expensive option. You might like that service with a smile, but it costs 3 times more than brewing it yourself!