Date
23 October 2017
Starbucks said the price increase is part of efforts to manage business costs, including labor and rents. Photo: Bloomberg
Starbucks said the price increase is part of efforts to manage business costs, including labor and rents. Photo: Bloomberg

Starbucks raises prices despite declining coffee costs

Starbucks Corp. is raising the prices of some of its drinks by 5 to 20 US cents to cover rising costs even as prices of raw coffee have been falling.

The Seattle-based coffee chain said the increase, which takes effect in the majority of its US stores on Tuesday, is part of efforts to manage business costs, including labor and rents, the Wall Street Journal reported.

The cost of the average customer order will be raised by 1 percent, the company said. Bagged coffee won’t be affected.

The latest price increase comes despite a 42 percent decline in Arabica futures prices from a peak late last year, the newspaper said.

Several other US retailers have started raising prices in cities that have passed wage increases, the report said.

– Contact us at [email protected]

RA/CG

EJI Weekly Newsletter

Please click here to unsubscribe