NYC Matcha Cafe Shrinks Cup Size to Offset Shortage, Price Hikes

Surging demand for matcha green tea is causing shortages that has one New York purveyor taking a novel approach.

At Matchaful cafes, lattes made with the tea have been shrunk by a quarter to 12 ounces to reduce milk costs and keep prices steady. Meanwhile, founder Hannah Habes is already expecting to boost costs as much as 30% for the company’s wholesale and e-commerce customers.