Starbucks Corp. will raise prices on some beverages Tuesday by an average of about 1 percent, despite a decline in coffee commodity costs, according to reports Monday.
According to the Associated Press, the price of some drinks will rise between 5 cents and 20 cents. Prices for a small brewed coffee and large brewed coffee will each increase 10 cents in most parts of the country. That would bring the price of a large coffee to $2.45 in most U.S. locations.
But most customers won’t notice the increase, as prices for popular beverages like Frappuccinos and cold drinks will remain the same, Starbucks officials said in various reports.
In Starbucks’ home market of Seattle, prices are expected to increase about 3.5 percent on average, according to the Seattle Times.
Food items are not expected to be included in the menu price increases, the company said in reports, and tea prices will only rise slightly.
Other restaurant chains are also raising prices in certain markets to offset higher labor costs.
For instance, Chipotle Mexican Grill Inc. increased menu prices in San Francisco by an average of more than 10 percent, compared with increases of about 4 percent in other cities, according to a report from William Blair & Co. In May, the minimum wage in San Francisco increased to $12.25 per hour, from $10.74 per hour.