Starbucks raised its prices by 10 cents to 20 cents this week — and customers are steamed
Starbucks just implemented a grande price hike.
The coffee chain raised the cost of regular brewed coffee by 10 cents to 20 cents at most of its U.S. stores. A 12-ounce “tall” coffee is now between $1.95 to $2.15; the third price increase in three years. But the prices of popular lattes, Frappuccinos, cold brews, iced coffees and other speciality beverages remain unchanged, the company announced Thursday.
In the past year, Starbucks has already increased prices across its menu by 1% to 2%, which, the company says is, “on par with the industry practices and is in line with food away from home inflation.”
It’s been a rocky year for Starbucks, which announced earlier this week that its executive chairman Howard Schultz, 64, will leave the company at the end of the month to retire. The news comes shortly after the coffee chain came under fire for having two black men arrested for waiting inside a Philadelphia store in April. Starbucks temporarily closed all of its stores on May 29 for an anti-bias employee training as a result. Company spokespeople say the price increase is unrelated to the store closings, however, and attributed the change to normal inflation.
“Starbucks continually evaluates pricing on a product-by-product and market-by-market basis,” the company said in a statement to Fortune. “Evaluating prices periodically allows us to balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers.
Still, news of coffee prices going up has some customers steaming mad.
“Starbucks is just overpriced coffee,” one woman tweeted.
Starbucks is just overpriced coffee.
— Therese (@ThatsTherese) June 8, 2018
“Starbucks is raising the price of their coffees like it isn’t already expensive af,” another person reacted on Twitter.
Starbucks is raising the price of their coffees like it isn’t already expensive af
— TJ🎈 (@TJ_Maxx_) June 7, 2018
Starbucks isn’t the only company to raise prices recently. Cereal and snack empire brand General Mill Inc. announced in March it would raise some of its food prices in coming months to reflect higher ingredient and shipping costs. And Chipotle hiked up its menu prices by 5% to 7% between April and November 2017 at more than half (55%) of the chain’s over 2,200 locations.
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