Starbucks is raising their prices today. But honestly no one really cares. They will continue to get their half caf, no foam, 2% milk, child temp, grande in a venti cup latte.
Starbucks calls it a small price increase that will only affect consumers’ ticket by 1%. Brewed coffee will go up by 10-20 cents and espresso will go up by 10-30 cents. 65% of their drinks’ prices will change. This the third summer in a row that Starbucks raised their prices.
“Pricing is continually evaluated on a product-by-product and market-by-market basis in our stores in order to balance business needs while continuing to provide value to our loyal customers,” Starbuck released in a statement.
Starbucks then tried to make it seem not so bad by promoting their loyalty program and in store promotions. By joining their Starbucks Rewards, they will save money in the long run so spending the money the are already spending. They claim “that our approach to value properly balances the experience we provide customers with our need to effectively run our business.”
The price increase was announced a day after they announce wage increases for their staff and management. They will boost compensation by 5%-15% starting in the fall. This in response to other fast food restaurants and retails raising their wages.
It is also a response to the rise of American consumption of coffee, which will be 1.5% this year. Coffee has also grow in popularity in China, Japan, and India. The higher demand is causing the prices to raise.
Unfortunately for Starbucks, they were forced to announce the price change early when a programming error caused some POS registers to charge some consumers with the new prices.
Even though, some people were overcharge prematurely and there was a price increase, people are not phased one bit. Starbucks’ sales has increased every quarter. Starbucks’ customers are so loyal that Starbucks can do no wrong for them.