According to one analyst, Starbucks may soon raise prices to boost operating margins. The caffeine chain, which hiked prices last October, does not comment on analyst rumors, but did say, “we are always monitoring the cost environment we are operating in.”

Comments

Edit Your Comment

  1. philipbarrett says:

    Yeah, they should because it costs 25 cents to make a drink that sells for $4.75. Shame that all those campesinos are getting rich picking the stuff for them while corporate misses out.

  2. banned says:

    They are too expensive as it is, I haven’t been there in years.

  3. homerjay says:

    Ooh! ooh! I can translate that! It means they’re always looking for excuses to raise prices, right??? I win!!!

    Thank god starbucks coffee tastes like ass….

  4. tozmervo says:

    Does this mean I should start stockpiling caramel frappuccinos?

  5. virtaaj says:

    Ohh.. people actually drink coffee at Starbucks?? I thought you can sit there without ordering for a long time. Too bad, they are facing problems to come in India, and even if they do, I doubt they will survive with those rates! :D

  6. yellojkt says:

    I’ll just have to read more $1.25 copies of the New York Times and put them back on the rack to cover the extra cost.

  7. olegna says:

    Indeed, the prices of wooden sticks, paper rings to put around your double-ply paper cups, napkins, single serving packages of artificial sweetener and pure cane sugar have all gone up. (Yeah, yeah, some of it is recycled paper, so that’s supposed to mean it’s OK to produce large handful of garbage for your personal coffee-delivery system.) Oh, wait! How elitist of me! I forgot. Sorry.

  8. thewriteguy says:

    Frankly it looks like they’ve over-extended themselves by expanding way too much over the past several years.

  9. philipbarrett says:

    @thewriteguy:

    The margins are so huge on brewed coffee sales I find that hard to believe.

  10. Squeezer99 says:

    its probably to do with starbucks healthcare plan. i read somewhere that their healthcare costs more then their coffee from their suppliers.

  11. philipbarrett says:

    @Squeezer99:
    Not hard to do when you pay starvation wages or use indentured slaves to gather the crop. Coffee growing/processing rates up there with oil & diamonds.

  12. floofy says:

    mmm. crap tasting coffee that gives me the shakes..give me cheap mcd’s coffee any day. it’s not as strong and a lot better tasting for $1.30

  13. chstwnd says:

    Floofy, I’d venture that the McD’s coffee cost of $1.30 these days is due in large part to SB inflating the perceived value of coffee. WalMart still sells 39oz cans of Folgers for $5 on a regular basis. At the minimum number of servings indicated for the can, it still costs only $.02 for a 6oz cup of coffee. And that’s with profits to the store and corporate. Let’s say we give them the benefit of the doubt and round up to $.10/cost to cover overhead (per cup) and convenience. So, even McD’s is charging a 1300% markup over doing it yourself.
    Starbucks will charge you a 1700% markup (400% more), so they can call their food clerks “baristas” and make them think they’re in an upwardly mobile career.