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.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
More Market News
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
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'