Starbucks never has been known for their exceptionally low prices, to put it one way. Don’t look for that to change anytime soon, either; the company announced today that it plans on raising prices in the U.S., primarily in the Northeast and Southeast regions.
Starbucks says that prices in the regions will only see an increase of about one percent, but that’s not a one percent price increase on all items on the company’s menu. The price of some items on Starbucks’ menu will stay the same while in New York City, for example, the price of a 12-ounce “tall” latte will go up by 10 cents. The 16-ounce grande, which Starbucks says is its most popular beverage, will not be effected by the latest price hike in any region.
The price hike in several of its busiest markets is in response to increased prices on commodities such as coffee and milk cutting into the company’s projected fiscal 2012 earnings by roughly 21 cents per share, Starbucks spokesman Jim Olson told Reuters. “These adjustments are the result of balancing the cost of doing business with competitive dynamics in these markets,” Olson explained.
How do you feel about Starbucks’ latest price hike? Let us know in the comment section below.
via Reuters
[Image credit: AP]
