People, whose early morning routine is a quick stopover at Starbucks, need to brace themselves as a cup of Joe gets a bit pricey starting Tuesday morning. This Seattle-based coffee company's price hike hits not only in its U.S. stores, but also in Canada.
CNN reports that one's morning coffee might be getting a little more costly as Starbucks will increase their charge to 5 to 20 cents for some of their beverages- mostly hot Starbucks drinks. The price increase will take effect on Tuesday to majority of its U.S. stores.
It was noted that for the past 3 years the Starbucks Company has increased prices on their different products. However, Lisa Passe, SB Spokesperson, explained that for 2 years the company have not increased their price for their majority of impacted beverages like the Tall brewed coffee and Grande Latte.
According to Lisa, consumer will notice an average 1% increase on its receipt. Products that are not affected by the price hike are the Frappuccinos and Grande-sized brewed coffees including packaged coffee and food. However, people's favorite Tall and Venti brewed coffee will be charged 10 cents more in most stores.
Despite the annual report on its net earnings of $4.6 billion- which amounts to 18% boost in profit last quarter, Starbucks has to increase the prices of those abovementioned beverages. It is reported that the rationale of its price hike is that the company plans to continue to increase spending on its employee. It has been known that Starbucks provides handsome benefits to its staff including increased take-home pay.
The Toronto Press' Globe And Mail resonates the said price increase in Starbucks' Canadian Store. However, it is only about 10% of the beverage menu that will have jacked up prices. Carly Suppa, the SBUX Canada PR, said in her email that "Ninety per cent of Canadian Starbucks beverages are not changing, including some of our most popular options and sizes." To date, there are 1,345 Starbucks Stores across Canada that are company-operated. But SBUX Canadian stores price increase will range from 10 to 20 cents on select beverages.
In comparison, US Stores minimum increase is 5 cents but in Canada Stores the minimum jack up price is 10 cents. According to the report of WVTM13, the company didn't indicate which drinks will be impacted since different regions (especially in US and Canada) charge different prices.
There is no report that Starbucks stores in other countries will follow suit concerning price hikes.
