If coffee drinkers wanted another reason to buy a mug and brew a cup of coffee from home, here it is. Starbucks announced starting June 7, 2015, prices on select beverages will be increasing, some as high as twenty cents. The increase is an odd one, because the cost of Arabica unroasted coffee beans actually declined this year compared to last year. It is typical in the industry to raise prices when coffee beans increase in cost. That is not the case here, so why is Starbucks raising the costs on their already pricey drinks?
The company claims they need to offset increased costs in payroll and rent, and this is the avenue to do so. The company wants to assure customers the price hike will not be all encompassing.
Lattes and brewed coffee is expected to see the biggest hikes. Starbucks said bagged coffee will not change in pricing, and neither will food items. Starbucks has been making a push to sell more food items in their stores and hopes stable pricing will draw more attraction to their selections. For those considering alternatives, Dunkin’ Donuts has lowered their coffee pricing, following the expense reduction of coffee beans. For those who just cannot make it through the day without a Triple Venti Half Sweet Non-Fat Caramel Macchiato or other obnoxiously long coffee order - those will likely remain the same price, for now.
Starbucks says the items selected for an increase were not included in product cost increases last year. On average a person spends close to a $1,000 annually on coffee from major coffeehouses. That department store brewer and mug is looking pretty good, isn’t it?