Word broke a couple of days ago that Starbucks is planning to increase the price on select drinks, upwards of $0.30 per drink on July 12th, saying only that the increase would impact “select beverages.”
Starbucks raised its prices by 5 to 20 cents for some of its drinks in July 2015. That increase mostly impacted hot beverages.
Since 2013, Starbucks have been increasing prices every summer, including last summer’s increase of between $0.05-$0.20 on hot drinks.
Heck, they even changed their rewards program to make it a longer timeframe for purchasers of the cheapest drinks to reach their free coffee.
And, they posted a revenue of nearly $5 billion last year!
What a business model!
According to the Canadian operations, the price of a Venti coffee will increase by $0.10 in some but not all provinces, and the price of their lattes in Grande and Venti sizes will increase $0.20, again in some provinces.
In the US, Starbucks announced that their Tall, Grande and Venti-sized coffees will see a price increase of $0.10 each in most States in the country.
At this time of declining coffee prices, we can clearly see that Starbucks coffee prices are not closely tied to the price of the bean alone, but also tied to the other costs, including the stores, employment, and other items which comes with a Starbucks drink.