Starbucks Coffee (Photo : Reuters)
Beginning Tuesday, an order of large coffee in Starbucks is many U.S. stores would cost $2.45. Prices of small and large brewed coffee will go up 10 cents in many outlets of the coffee chain.
It is the second time in one year that Starbucks raised prices nationally. For this round of price hike, the chain is increasing prices from 5 to 20 cents for drinks, reports Associated Press.
In a statement, the Seattle-based firm said that it would continue to assess its pricing policy as it aims to "balance the need to run our business profitable while continuing to provide value to our loyal customers and to attract new customers."
But Starbucks representative Lisa Passe said that the chain would not increase prices of its food items to encourage customers to order beyond drinks.
Starbucks is going against the trend in the coffee seller industry because its competitors are cutting prices. The J.M. Smucker Co. announced last week a reduction in price tags for many of its coffee products due to lower future prices of unroasted coffee beans.
However, Starbucks pointed out on Monday that coffee comprises only part of its operating expenses which include equipment, marketing, labor and rent.
In Canada, the price increase is from 10 to 20 cents on selected drinks. However, it would apply to only 10 percent of beverages in Starbucks's Canadian menu. Price of coffee served in Venti cups, the largest order in Canadian outlets, would go up by 10 cents in some provinces, while 20 cents would be added to the price of latte in Grande or Venti cups.
In an email to Ottawa Citizen, Starbucks Canada spokeswoman Carly Suppa said, "Ninety per cent of Canadian Starbucks beverages are not changing, including some of our most popular options and sizes."
There are 1,345 company-operated and licensed Starbucks stress across Canada.
