Why Starbucks is raising its prices
Customers can expect to see a small increase on the menu starting next week.
The company says other costs are going up, including rental rates for its stores, labor for employees and prices for non-coffee ingredients, according to The Wall Street Journal.
It might also have to do with that little price cut in May, when Starbucks lowered the cost of the packaged coffee sold at its stores by about 10% to stay competitive with rivals.
At any rate, most customers probably won't notice the difference, which rolls out Tuesday. The largest increase will be only about 10 cents, and fewer than a third of all beverages will see an increase. That amounts to an overall 1% increase in prices, on average.
Some stores will raise the price of a tall brewed coffee by 10 cents, for example. But the prices of medium and large brewed coffees and Frappuccinos are not expected to change in most locations, according to The Associated Press.
Starbucks was quick to note that this is the first price increase on its menu in nearly two years for some markets.
Coffee costs have been on a wild ride for some time. Last year, in fact, Starbucks paid $1.4 billion for coffee beans, according to an analyst at Janney Montgomery Scott, AP reported. But the company has found some relief as prices have declined recently. The analyst thinks Starbucks will benefit from lower coffee costs for the next few years.
More on moneyNOW
- What celebrities who 'live on' food stamps don't get
- Abercrombie slapped over firing hijab-wearing worker
- Student loan debt is worse than you thought
What else is new? Prices on everything we buy have gone up. Either that or the size of the product is downsized and the price stays the same.
I on the other hand have been going to Starbucks for years and I can tell you that a bad cup of coffee there is possible, but rare, and they will make you a fresh cup if you ask. Also, be sure to factor in a clean bathroom, great music, and free internet, not to mention a heated or cooled place to sit, if that all isn't worth $2.00, what is?
Anyone who buys Starbucks coffee has two issues.
Firstly they are getting ripped off and secondly their coffee is crap.
$4 for a late, really?
Then they always expect a tip! Why? For doing what they are paid for already?
Perhaps try an espresso from a small Mom and Pop shop who actually deserve the money.
OVERRATED POS STUFF ANYWAY I CAN BUY MY OWN GRINDS AND KICK THEIR A$$ WITH FLAVOR
SO WE WOULD BE PAYING FOR THE "FREE" WIFI NOT BETTER COFFEE EHHH?? BUNCH OF PRETENTIOUS YUPPIES
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
More Market News
These hot movers could rise by double digits in coming months.
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'