Photo: By Pierre Mallien on Flickr
Starbucks is falling under some cost pressure, so it’s raising prices on a bunch of its drinks in two big regions by about 1%, reports Lisa Baertlein at Reuters.The price hikes will affect the Northeast and Sunbelt regions, which includes big cities like New York, Boston, Washington DC, Atlanta and Dallas.
In New York, ‘tall’ coffees and lattes will cost 10 cents more, and there will be price increases on a half dozen more beverages. There’s no word yet on what those additional drinks will be.
The chain expects prices for coffee, milk and fuel to rise this year, but that’s likely not the only thing that prompted the move. Minimum wage increases in various states may also have played a role.
Starbucks spokesman Jim Olson tells Reuters that the change is trying to balance “the cost of doing business with competitive dynamics in these markets.” That means while distribution and operations are a big reason, it’s also trying to stay competitive, as the market has changed in recent years with the huge rise of Dunkin’ doughnuts and the entrance of McDonald’s.
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