Revenue climbs as OCS reinvents itself

In our September/October issue, we look at the state of the office coffee service industry in 2024: a story of growth through change. Sales rose 17% year-over-year, demonstrating that OCS continues to grow despite the shift to hybrid work reshaping demand. Five years after the pandemic, operators have found footing in a new workplace rhythm: leaner, more flexible and more premium.

Daily volumes remain below pre-pandemic levels, but operators are offsetting the shortfall with premiumization. Espresso, cold brew taps, local roasters and specialty brands are replacing value coffee as offices look to attract workers back to the office with better options. Employers understand that offering higher quality beverages is no longer a luxury but a workplace perk that supports culture and engagement. The data tells the story clearly: Value-priced coffee sales have fallen while specialty formats continue to climb.

Coffee, however, is no longer the whole story. In 2024, coffee accounted for just 27% of OCS revenue, a 15-point decline in two years. Growth in OCS stems from pantry services, water, ice and micro markets. Operators are no longer simply coffee providers; instead, they are selling the workplace experience. Employees may not be in the office every day, but when they are, they expect convenience, variety and premium service. OCS is filling that demand with offerings that stretch beyond the brew.

Rising costs remain a concern, as inflation continues to pressure both coffee and supply costs. Green coffee prices have remained stubbornly high, and labor costs remain a persistent challenge. Still, operators are adjusting. Price increases, smarter product mixes and expanded services are helping preserve margins. Many are also investing in staff and training, building sales expertise and strengthening customer relationships.

This is not the same OCS business that existed in 2019. It’s leaner, more diverse and more strategic. Operators who thrive will be those who recognize that coffee is no longer the endpoint but the entry point into a larger service portfolio. The industry is moving toward a model where every cup, every cooler and every pantry shelf adds to the value equation.

Looking ahead, the conversation continues in November at NAMA’s Coffee Tea & Water show. With the momentum of 2024 behind it, the event will showcase how operators and suppliers are embracing premiumization, diversification and technology to capture more value from every account. The growth story of OCS is still being written, and CTW will be the stage where its next chapter begins. I look forward to continuing the conversation in Miami.