It’s time for more sticker shock at Starbucks.
The company, which raises prices on a regular basis, is at it again. But this time, the Seattle-based coffee house is only targeting brewed coffee, which is going up by as much as 20 cents in at most company operated stores. Espresso and specialty drinks remain unchanged.
But those looking for a basic cup of Joe will likely be paying more than $2. The company said a majority of our stores are selling a tall brewed coffee for $2.15, up from $1.95 in most markets including cafes in Southern California.
“In 97 percent of our stores, majority of the beverages such as Latte, Mocha, Tea Latte, Iced Coffee, Frappuccino, Iced Tea, Cold Brew and Nitro remain untouched,” the company said in a statement.
A medium-sized latte in Southern California and Denver, for example, cost $3.95. A grande Pike Place roast cost $2.45 in both regions but $2.65 in Queens, New York.
Starbucks said the menu adjustment was “not related to the May 29 store closures and trainings.”
During that time, about 8,000 stores closed for about half a day to provide employees with anti-racial bias education. Industry watchers estimated the shuttering cost the chain anywhere from $12 million to $16 million.
Starbucks said the menu increase was made to ensure “our business profitably while continuing to provide value to our loyal customers and to attract new customers.”
In the past year, Starbucks increased prices 1 to 2 percent, which the company said was “on par” with industry practices and in line with “food away from home inflation.” Over the last 12 months ending in April, the food away from home index rose 2.5 percent, according to the Bureau of Labor Statistics.
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