Coffee lovers: Your Starbucks fix is going to cost a little more come Tuesday, June 24. How much more? That depends.
Starbucks said many of its in-store beverages will increase by 5 to 20 cents, while its ground and whole-bean packaged coffee sold in grocery stores will go up by $1, according to USA Today.
If a Frappuccino is your Starbucks drink of choice, you’re in luck. There’s no increase planned for the iced beverage or tall brewed coffees in most regions, USA Today said.
We told you in April that coffee prices had skyrocketed after a severe drought in Brazil reduced the Arabica bean crop. But, unlike smaller coffee retailers, Starbucks had already locked in its bean prices for 2014 and 2015.
So, why the price hike? According to Bloomberg Businessweek:
Starbucks attributes the price increases to “competitive dynamics,” and the company’s “overall cost structure,” which includes the cost of commodities, labor, rent, and equipment. The announcement comes as a surprise as the company had previously said it has no plans to increase prices despite the rising cost of coffee beans.
Just a week ago, Starbucks announced that it will assist workers in paying for their online course tuition at Arizona State University. A company spokesman said the price increase is not related to that, Businessweek reported.
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