Business | General

Starbucks hiking coffee prices

Price hikes despite lower bean costs

  • AP
  • Published: 13:33 June 22, 2013
  • Gulf News

New York: Starbucks wants a little extra change for that latte.

The Seattle-based coffee company says it’s hiking prices on average by one per cent nationally starting on Tuesday. But it says the price for many drinks, such as medium and large brewed coffees and Frappuccinos, won’t change in most its 11,000 US cafes.

For a small brewed coffee, the price will increase by 10 cents at most. Other drinks could increase by more than that.

“Less than a third of beverages will see a small increase in most stores,” said Lisa Passe, a Starbucks spokeswoman. She noted that the increases will vary by region and may apply to different drinks.

Depending on the market, Starbucks Corp notes it’s the first price hike most customers will see in about two years.

The price hike comes despite falling coffee costs that have boosted the company’s profits. In the last quarter, Starbucks cited lower coffee costs for a stronger operating margin, which represents the money it pockets from sales after subtracting what it pays to keep stores running.

And those lower coffee costs are expected to continue padding its bottom line.

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