Starbucks' Prices Going Up

Citing a 13-year high in the price of its coffee beans, plus “significant volatility” in other ingredients like dairy, Starbucks last week said it plans to raise prices on certain “labor-intensive and larger-sized” beverages. The small tall coffee will remain at its current price for now, says the company. I wonder if those truncated menus the company introduced a few weeks ago were really about hiding the least expensive option from consumers, especially since it isn’t being included in the price hike?

“Starbucks Responds to Surging Green Coffee Prices” [Starbucks.com]

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  1. bluevideo says:

    Every time coffee beans hits a high, it seems all the coffee stores jack their prices and put up little cardboard signs saying something sheepish like “rather than compromise the quality of our coffee, we have decided to implement a modest price increase”.

    It’s like the newspapers cutting pages and increasing prices every time prices get high. Yet, whenever these commodities hit their troughs, do they ever correct the other way?

    • rdm says:

      Agreed. A gallon of milk is $0.99 @ Walmart right now (at least in Dallas) so what are they paying for it? Shouldn’t that cancel out the coffee price hike?

      • phrekyos says:

        99 CENTS for a gallon? Jeez, I pay almost 4x that.

      • MamaBug says:

        $.99??!?! It’s about $2.99 here in Alabama. :(

      • Verucalise (Est.February2008) says:

        Holy crap, a GALLON? I live in NY, surrounded by dairy farms and milk here is about $2.89/gallon. I’m not complaining because that’s still a decent price but I’m perplexed… $0.99? My SO drives milk tankers, he said the milk industry was going downhill… but DAMN, 99 cents a friggin gallon?!? I’m stunned.

    • bluevideo says:

      *like the newspapers… every time PAPER prices get high. (oops!)

  2. suez says:

    Why so cynical?
    /sarcasm

  3. TakingItSeriously is a Technopile says:

    I have not seen a similar price hike at the local coffee shops in my town.

  4. Verucalise (Est.February2008) says:

    I don’t drink Starbucks coffee, but if they are going to increase them while coffee prices are high… they’d better drop them when prices back off. Not that they will… but just saying.

  5. D0rk says:

    Noooo, not my Frappes! :(

  6. crtjer says:

    I don’t understand why the increase but then again I don’t usually drink the flavored (I’m guessing more labor-intensive drinks). I just got back from a trip to Seattle, prices cheaper for cappucinos and lattes except quality wise way better than anything Starbucks has put out. It seems like a price increase in beans is just a scapegoat reason to raise the prices. $4.12 for Starbucks Grande Cappucino, $2.56 I saw in Seattle with a better quality bean in my palette.

  7. pecan 3.14159265 says:

    A tall coffee isn’t actually $1.50 everywhere. Starbucks’ prices already vary depending on market. The one I go to at work is more expensive than the one I go to when I’m near home.

    • Blueberry Scone says:

      Yeah, I’ve noticed the same thing. Downtown Chicago is more expensive than the ‘burbs, and the airport is as much – if not more – than downtown (at least it was a few years back).

  8. Floppywesl says:

    If they would just feed coffee beans to cows we could avoid these issues

  9. AngryK9 says:

    “In direct response to Starbucks, several large corporations announced increases in executive bonuses to compensate for the higher price of lattes”

  10. leprechaunshawn says:

    I guess they figure they can raise their prices since the recession ended 15 months ago.

  11. EcPercy says:

    Hum… I live and work in Kuwait. A Grande Frap is like KWD 2.900 = USD $10.16

    Needless to say at that price… I don’t even bother with the place. I am saving myself from the 1000 calorie coffee drinks.

    • Michaela says:

      My goodness! I thought the Starbucks I found in Paris had crazy prices, but that is just awful!

    • Arcaeris says:

      Isn’t everyone in Kuwait rich from the oil? I knew a Kuwaiti woman who came here to do some lab work and then go back and teach at a University in Kuwait, and she had more than enough money to bring two servants with her AND furnish them with their own apartment (next to hers).

      • EcPercy says:

        Don’t get me wrong… I work here. I am an American… so no I don’t get to partake in the oil subsidy. Yes, if you are Kuwaiti, you get money from the oil revenues every month… basically just being paid to be alive. Your amount depends on your rank. Basically, something to do with your last name and how close your lineage is to the ruling family.

        I on the other hand just receive my salary from the company I work for that is based in the US.

  12. SkokieGuy says:

    The increase is BS. Labor intensive drinks have less coffee in them and more of other ingredients. If it were truly an ingredient-based increase, then a large coffee should increase more than a large specialty drink that has less coffee in it.

    From SFgate.com: “Take that double cappuccino, for instance. According to Ferguson’s association, coffee makes up just 5 percent of the cost per cup”

  13. pot_roast says:

    Guess this means that I’ll cut back on Starbucks even further. I only go there for the mochas anyway.. drip coffee I get at Dunkin Donuts. The “labor intensive” drinks are probably those darn frozen Frappucinos that end up holding up the line. :/

  14. sk1d says:

    Is the price of coffee at a 13 year high because of actual supply/demand issues, or is some jackass hedge fund manager hoarding futures contracts to drive the price up on purpose?

  15. Hoot says:

    That dog is so cuuuute. Although for the price of that drink, you can probably buy him a week’s worth of food.

    • OBEYshiba says:

      the two coffee drinks my wife and i get every saturday morning (the only time we pay for outside coffee) are, combined, a dollar or two more expensive than that dog’s weekly ration of primal raw nuggets.

    • Dustbunny says:

      Is that the same doggie that was gnawing on a Netflix envelope in the Open Thread pic?

  16. evnmorlo says:

    In unrelated news, the dollar is at a 15-year-low. In even more unrelated news, the government prints trillions of dollars to prevent deflation.

  17. DH405 says:

    Having worked in a coffee shop, I can tell you that coffee costs NOTHING.

    At 14 grams per double shot, let’s say 18 if you account for some waste, that’s over 25 double-shot pulls per pound. In my shop, we pay $8/lb for local HIGH quality espresso blend. That’s 32 cents per double. I’m sure that Starbucks pays way less than we do for coffee.

    Want to raise prices? Okay. Just be honest about why you’re charging more for your garbage coffee.

  18. menty666 says:

    Well, given I usually get the venti iced coffee when I treat myself, a questionable ‘value’ at 2.96 after taxes, I do believe that’s it for that. Even I have my limits as to what I’ll be dumb enough to fork over.

  19. Trick says:

    I find myself drinking coffee in the morning these days… sometimes in the evening after a good dinner. It has never been my thing but I can live without Starbucks. Yeah their coffee is good but I find Jack-in-the-Box’s Kona coffee to be very good. Heck, the Farmers Bros. coffee at a local donut shop is good too.

  20. Buckus says:

    If the pretentious attitude and burnt coffee wasn’t enough to turn you away, maybe this will do the trick..

  21. AllanG54 says:

    Since no one said it, I will…”I make my own coffee at home.”

  22. AllanG54 says:

    Since no one said it, I will…”I make my own coffee at home.”

  23. FrugalFreak says:

    Here is the real answer why the tall disappeared off the menu board. Seems they didn’t want you to notice the price increases coming.

  24. Mr.Grieves says:

    Boiled frogs anyone?

    As long as people keep paying these ridiculous prices, prices will continue to go up.

  25. Ayumi~n says:

    Another reason not to go to Starbucks… But I do miss the old Frappucinos… My expensive, once-a-month splurge…

  26. SWBLOOPERS says:

    A major industrialist (whose name escapes me at the moment) once said, “The primary difference between a cost increase and a cost decrease is that only one of these gets passed on to the consumer.”