Cutting out the free coffee at any company is a sure sign that they are circling the drain. Coffee is really cheap and it's basically an expected thing at any company - taking it out is a sign of managerial shortsightedness and a desperate attempt to save not that much money to impress your shareholders. Is this what you really want to convey to everyone?
It's also a legal way to boost productivity of employees. That may be harder to quantify but take away coffee from a regular drinker and see what happens and it's obvious that those effects will trickle down to the work product in the office.