Photo (cc) by Sergey Galyonkin
Starbucks is raising prices on coffee drinks, so your wallet may get a bigger jolt than you do from your next grande caramel macchiato.
Starting Tuesday, July 7, you’ll pay from 5 to 20 cents more for most drinks affected by the price hikes, which will vary by location, Starbucks told media outlets.
The change should raise the average bill about 1 percent, but fewer than 20 percent of customers will feel the pinch, Starbucks says. However, The Seattle Times reports, the average visit is expected to cost some Pacific Northwest customers an additional 3.5 percent.
Small and large brewed coffees will go up 10 cents each in most areas of the country, Starbucks says. That would bring the price of a large coffee to $2.45 in most U.S. stores. Lattes and mochas will increase by 30 cents.
“We continually evaluate pricing on a product-by-product and market-by-market basis in our stores in order to balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers,” a Starbucks spokesperson told Money Talks News.
In most stores, the price of a grande brewed coffee, Frappuccino and Refreshment beverages will not change, the spokesperson said.
Prices also won’t change for bagged coffee and food such as sandwiches and pastries, which Starbucks has increasingly pushed to drive revenue growth. It has also expanded it mobile order and payment system.
Starbucks last raised its prices in June 2014. The new price boost comes as Arabica coffee bean prices are falling, the Wall Street Journal reported.
Starbucks said coffee costs are only part of its expenses, which also include rent, labor, marketing and equipment.
Swallow these numbers along with your double shot: Starbucks in April reported $4.6 billion in second-quarter revenue, an 18 percent increase from the previous year’s quarter. Quarterly profit grew 15.9 percent to $464.9 million.
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