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Matcha has reached a fever pitch in today’s culinary world, and more matcha-focused cafes are cropping up on the Peninsula — even with an ongoing shortage of the green-hued tea powder.
With origins in Japan dating back to the 12th century, matcha is produced by finely grinding shaded tencha leaves, a process that’s highly seasonal, labor intensive and steeped in tradition. The result is a tea powder that’s versatile when whisked into beverages or desserts like lattes, ice cream or pastries. High-grade ceremonial matcha is most suitable for crafting drinks, while culinary matcha is best used for cooking and baking.
Although matcha has been around for centuries, demand for the product has risen steadily over the past decade. In Japan, data has shown a threefold increase in matcha production from 2010 to 2023, even as the number of tea farmers in the country has dropped from 53,000 in 2000 to just over 12,000 in 2020, according to a recent Food & Wine article. Some Japanese tea purveyors have even set limits on the amount of matcha visitors can purchase. This existing demand for matcha, coupled with the recent onset of tariffs, has tea importers and businesses feeling the strain.
Matcha’s popularity worldwide can largely be attributed to its health properties, explained Patrick Sunbury of Redwood Tea Estate, a Lodi-based tea farm that has been in operation since 2020. While the California tea industry is in its infancy, Sunbury’s farm is the only one in the state producing tea on a commercial scale, including green tea, white tea and oolong tea. The farm is also experimenting with a California-grown matcha in the years to come.
“Matcha’s popularity makes sense: Its brilliant green color visually conveys wellness and vitality,” Sunbury said. “With matcha, you consume the entire leaf, so you’re also getting antioxidants like EGCG, chlorophyll, fiber and other nutrients. It’s lower in acidity, easier on digestion and carries centuries of tradition as a centering ritual.”
Jason Naraja of Kaizen & Coffee also believes matcha’s health properties help fuel its popularity.
“Matcha has extra appeal since matcha’s naturally occurring L-theanine helps balance out the energy boost and reduces the jitters that can come with caffeine,” said Naraja, who opened his San Mateo coffee shop in 2023.
A craft coffee shop at heart, matcha is a fixture on Kaizen’s menu, with offerings such as a lemongrass coconut matcha latte or an ube matcha latte from its secret menu. Cafes like Naraja’s have helped make matcha more accessible, even if they don’t necessarily specialize in Japanese green tea.
Along the Peninsula, a number of dedicated matcha cafes have recently opened to meet the demand for all things matcha.
Based in Palo Alto, Ryokucha Cafe soft opened in August and offers matcha and espresso-based beverages and Straus soft serve. Owner Stuart Bai previously operated mochi doughnut shop Te’Amo out of the space, which features high ceilings, wall-to-floor windows and outdoor seating.
Seeking a fresh start, Bai transitioned to a matcha concept with the help of his friend Yuki Oyaizu, a native of Japan. Ryokucha proudly tailors drinks to customers’ tastes, offering an extra shot of matcha and alternative milks free of charge. When asked about shortages, Bai said he is confident Ryokucha will remain well stocked.
“My manager, Yuki, has a personal relationship with the farmer based in Shizuoka, Japan,” Bai said. “I could see a shortage impact for larger-scale businesses, but not for the smaller quantity of matcha a business of this size needs.”
Similarly, mini chain Matcha Ren, which opened in Daly City’s Serramonte Mall on Sept. 12, is leaning on its supplier relationships to bring its menu of whisked-to-order matcha drinks and desserts like crepes and soft serve to new customers. Matcha Ren’s first Bay Area cafe opened in San Jose, and its new Daly City location takes over the former Mochill Donut kiosk.
“We have not faced any critical shortages,” said Taisuke Yamamato, vice president and managing director of Yamamoto Holdings. “However, the rising cost of ingredients is unavoidable and (we will) consider price adjustments if necessary to ensure we can continue providing our customers with high-quality matcha.”
Open since August, Matsu Matcha in Santa Clara sources its supply from matcha epicenter Uji, Japan. Its menu includes matcha drinks, parfaits and five levels of premium Japanese-style gelato. The first level is described as “light, floral and refreshing” while levels four and five are characterized as “bold” and “umami-forward,” respectively.
Matsu Matcha’s manager Alan, who asked to keep his last name private, believes that a growing enthusiasm for Japanese food and culture has contributed to the matcha boom. He said that while Matsu Matcha has a strong relationship with its supplier, businesses need to brace for change.
“The shortage impacts the entire food and beverage industry, not just us,” Alan said. “We have seen suppliers increase their price 50%-60% over the past year, due not only to tariffs but also because of the continued demand for premium ceremonial matcha.”
Other matcha cafes on the horizon include BonBon Matcha along Main Street in Cupertino and Izumi Matcha in downtown San Mateo. Alongside existing cafes and tea shops like Junbi, Maruwu Seicha and HeyTea, there are plenty of local matcha spots to choose from, including eateries like Bloom Bagels.
Based in Campbell, Bloom Bagels is known for its Korean-style stuffed bagels, but its beverage menu has also built steam. Owner Emily Tan estimates that about 40% of the eatery’s drink orders are now matcha-based. Recent creations include a pistachio matcha latte and a banana matcha latte, in addition to signature espresso-based beverages.
Tran planned to get ahead of the matcha shortage by buying out the rest of her supplier’s stock for the current harvest. But her order, valued at $7,000, got lost in the mail for about four weeks before it was delivered to the shop.
“It is nonetheless sad that a tiny matcha order can surmount to that much money nowadays,” Tran said before her package arrived safely. Relieved at this turn of events, Tran is dedicated to building up Bloom Bagels’ drink menu with coffee and matcha alike.
There are no signs that matcha will run out entirely, but the shortage remains a valid concern. As an alternative, business owners and tea experts encourage customers to try other forms of tea to ease the demand, such as hojicha (roasted matcha) or black tea matcha. Customers can also try their hand at making tea-based drinks at home.
“In reality, you can grind any tea into a powder, and each has its own unique expression,” said Patrick Sunbury of Redwood Tea Estate. “Depending on your palate, these can be inferior, or in some cases superior, to traditional Japanese matcha.”
Ryokucha Cafe, 4131 El Camino Real, Palo Alto; 650-752-6145, Instagram: @ryokucha.cafe. Open daily from 11 a.m. to 8 p.m.
Matsu Matcha, 3030 El Camino Real, Santa Clara; 408-564-4076, Instagram: @matsumatcha.sc. Open daily from 11:30 a.m. to 10 p.m.
Matcha Ren, 3 Serramonte Center, Daly City; Instagram: @matcha.ren. Open daily from 10 a.m. to 9 p.m Monday through Thursday and 11 a.m to 7 p.m. Sunday.
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