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Starbucks Raising Prices on "Labor Intensive" Drinks
By
John Del Signore
Published Sep 23, 2010
Modified Sep 23, 2010
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By
John Del Signore
Published Sep 23, 2010
Modified Sep 23, 2010
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Starbucks announced late yesterday it will be raising the prices of some of their more labor-intensive beverages, thereby sending some grande drinks over the $5 mark. CEO Howard Schultz blamed the price hike on "a highly speculative green coffee market and dramatically increased commodity costs... And while many, if not most, coffee roasters and retailers began raising prices months ago, we have thus far chosen to absorb the price increases ourselves and not pass them on to our customers." Well, the free ride's over, deadbeats!
Starting at a vague time of their choosing, the company will begin implementing "targeted price adjustments on certain beverages in certain markets." And so Starbucks' Phase 2 begins.
The good news for those who like buying overpriced burnt coffee at enervating, generic chain stores is that Starbucks has vowed to "maintain or lower the price of some of its most popular beverages, including certain espresso beverages; and, in most markets, its popular $1.50 tall brewed coffee." But green arabica coffee bean prices are close to a 13-year high, and costs for its other raw ingredients, including dairy, sugar and cocoa, have gone up, too.
Some analysts expect the price of arabica to go down next year, as supply outpaces demand. But Starbucks won't rule out raising the price of packaged coffee, including beans sold in grocery stores, in the coming months. For now consumers of fancy drinks like Grande Mocha Java Chip Double Frappuccino who will have to bear the brunt of the cost. So brave!
Tagged
coffee
green coffee beans
prices
starbucks
John Del Signore
Originally from the Albany area, John Del Signore has called NYC home since 1995. In addition to his thousands of meticulously-crafted bespoke blog posts for Gothamist, his writing has also been published in The Awl, Deadspin, The Nervous Breakdown, and performed at The Brick Theater in Brooklyn.
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