What’s behind Starbucks price increases?




Starbucks says customers will pay from 5 to 20 cents more on many drinks starting Tuesday.  The company did not specify exactly which drinks will be impacted because it charges different prices in different regions of the country.

Starbucks has increased prices on different products for at least the past three years, but Starbucks spokesperson Lisa Passe said this is the first increase in two years “for the majority of impacted beverages, such as Tall brewed coffee and Grande Latte.”

On average a Starbucks receipt will be about 1% more expensive, she added. Food, packaged coffee, or and some drinks such as a Frappuccinos and Grande-sized brewed coffees will not be affected. But Tall and Venti brewed coffee will go up by 10 cents in most markets. The higher prices come despite an 18% boost in company profits last quarter.