Starbucks to offset expenses by raising prices in the US
Starbucks Corp. is hoping it could offset its expenses by raising the prices in most of its stores in the United States.
According to The Wall Street Journal, the price of a brewed coffee in most of Starbucks’ American cafes has just increased by between 10 cents and 20.
This was felt in the majority of the more than 8,000 company-operated stores across US.
To be exact, the price of a 12-ounce “tall” cup of brewed coffee now ranges from $1.95 to $2.15.
A Starbucks spokeswoman, as cited in the report, said the company evaluates pricing on a product-by-product and market-by-market basis.
“In the first half of this fiscal year, Starbucks store operating expenses rose 9 percent compared with the same period a year earlier, while its cost of sales including expenses such as rent rose 13 percent,” the report further said.
Starbucks also want to adjust its prices based on adjustments on inflation.