New York – Starbucks spokesperson Lisa Passe announced earlier this month that an average price hike of 1% will be implemented for almost all of the cafe’s 11,000 branches in the US. This announcement came at a time when prices for coffee beans have gone down thus lower production costs for the coffee company.
“Less than a third of beverages will see a small increase in most stores,” said Lisa Passe. While the increase is not likely to affect medium and large sized beverages including Starbucks’ signature Frappucinos, a hike of less than 10 cents should be expected in small-sized drinks. The new prices will vary per region and will affect each drink differently.
When asked why Starbucks has decided to hike up on their prices despite lower costs for coffee beans, their answer was simple. The prices for beans may have gone down but the other costs such as rent, electricity, sugar, milk, and so on remain stagnant. While the company has and will definitely benefit from lower coffee bean prices, this cost is only accounts for less than 10% of the total expenses related to running a store.
The 1% price increase will be the first that Starbucks goers will see in 2 years. Some Starbucks customers have expressed their displeasure about the news but Starbucks remains confident that their sales will continue to hold steadily, if not towards an upward trend.
The price hike is set to take effect on Tuesday in various Starbucks outlets in the United States.