Prices for some Starbuck’s drinks will increase 5 to 20 cents starting today – July 7, 2015. The price hike will equate to about an extra 1% revenue for the company.
A venti brewed coffee will increase by 10 cents and will now cost $2.45 at most U.S. stores.
Starbucks has increased prices for three straight years. Last year the company raised prices in June when the price of coffee beans was skyrocketing. This made some sense. This year the cost of raw coffee has declined by 42%.
Starbuck’s profits rose by 18% last quarter. $4.6 billion dollars was the net profit reported last quarter.
A 1% price hike might not seem like much to the average consumer. However, consider the number of customers times the number of stores and it is easy to see how that 1% bump will generate billions more.
Will the OTP staff still buy Starbuck’s products? Probably so.
All Old Town Starbucks are listed in Old Town’s most complete list of Eats & Drinks.