topic Re: Starbucks Price Increase in Community Chat

Starbucks Price Increase

MorningLover — Sat, 05 Feb 2022 13:03:02 GMT

NYPost: The Seattle-based coffee chain is planning even more menu price hikes this year after previous increases last October and January. Company executives blamed the move on inflation, ongoing supply chain woes and rising labor costs that have eaten into Starbucks’ profits.

“We have additional pricing actions planned through the balance of this year, which play an important role to mitigate cost pressures, including inflation, as we position our business for the future,” Starbucks CEO Kevin Johnson said during an earnings call Tuesday.

Johnson noted the Omicron COVID-19 case surge caused additional costs and staffing shortages that were in “excess of our expectations.”

Delivery and transportation of key goods also grew more expensive as Starbucks’ third-party partners experienced delays and labor shortages.

Starbucks did not say which menu items will be more expensive or how much average prices are set to increase. A venti cappuccino currently costs $5.25 in New York City, according to the coffee chain’s app.

Inflation hit a four-decade high of 7 percent in December. Businesses are paying steeper prices for key commodities such as meat, coffee and dairy products – and passing on some of those expenses to American consumers.

Menu prices at fast-food restaurants rose 8 percent in 2021, according to the Consumer Price Index.

Starbucks is the latest of several companies to announce price hikes to combat their rising expenses.

The extra costs have eaten into margins. McDonald's profits also missed estimates when it reported its fourth quarter earnings on Thursday.

McDonald’s revealed it raised menu prices by 6 percent in 2021 and said more increases were planned for this year. The company citing the surging cost of raw beef and labor costs as it seeks to train and pay new workers during a nationwide labor shortage.

Starbucks fell short of Wall Street’s expectations for profit and same-store sales in its first-quarter earnings report on Tuesday. The coffeehouse chains is also facing labor pressure as a growing number of its company-owned stores seek to unionize.

Re: Starbucks Price Increase

Carolina925 — Sat, 05 Feb 2022 13:15:55 GMT

I'm not a Starbucks fan, their coffee always tastes burnt to me. They are very popular in my little town, population around 190,000, we have 13 stores! Our closest store has to close without notice quite often because they can't find employees or one of their employees has tested positive for Covid. That, of course, has nothing to do with Starbucks, most restaurants around town have the same issues.

I'm a coffee "purist" and prefer only cream in my coffee but I can imagine the cost of all the things they put into the coffees is rising quickly.

Re: Starbucks Price Increase

Oznell — Sat, 05 Feb 2022 13:27:56 GMT

Very interesting, @MorningLover . I enjoy Starbucks on occasion, but this makes me sort of glad I still have my vintage battered stove top percolator and even my cranky older Keurig to rely on!

However, I'm being short-sighted, since just regular coffee beans will keep hiking in price too...

I enjoy your fact-based reporting "from the front" on all subjects, @MorningLover -- keep 'em coming!

Re: Starbucks Price Increase

Foxxee — Sat, 05 Feb 2022 13:36:31 GMT

I wonder how long consumers are going to put up with all these price increases even if they can afford them.

Businesses and consumers have been placed into a helpless situation when solutions to the problems could begin on Monday.

Re: Starbucks Price Increase

drizzellla — Sat, 05 Feb 2022 13:53:44 GMT

Can't say it is a surprise. One of the busiest Starbucks in our area is frequently closed with signs on their doors.

This Starbucks used to have cars in line around the building. Now they are sporadically closed.

Can't help business if you drive to that Starbucks and it is closed. You made the trip for nothing. I am sure people will think of that the next time they want to drive to that Starbucks.

Where the Starbucks is there is a long road of just fast food and sit down restaurants. And most of the places have at one time been closed as you drive by. Some have closed permanently. It is a relatively new development. You know the owners have taken a beating in their pocketbook.

No wonder Starbucks missed Wall Street's expectations.

Re: Starbucks Price Increase

kaydee50 — Sat, 05 Feb 2022 14:01:59 GMT

I live between a Starbucks on one corner and a Dunkin Donuts on the other. Haven't been in either. Fortunately, I am very happy with my Folger's Instant. Cannot imagine spending $5+ on a cup of coffee.

Re: Starbucks Price Increase

goldensrbest — Sat, 05 Feb 2022 14:07:27 GMT

Every thing is going up in price.

Re: Starbucks Price Increase

RollTide2008 — Sat, 05 Feb 2022 14:11:21 GMT

I pay $2.37 for the largest cup of drip coffee my Starbucks offers, it doesn’t cost $5 for a substitute of instant Folgers.

Coffee, dairy products, and labor are going up. Starbucks employees are offered full benefits and have one of the highest starting wages in the quick service environment. I don’t mind paying a little more.

Re: Starbucks Price Increase

MorningLover — Sat, 05 Feb 2022 14:41:25 GMT

Prices must vary in different locations. I only drink the 'regular' coffee, the venti (largest) size is $2.95. My daughter spends a fortune on the 'fancy schmancy' drinks!

Re: Starbucks Price Increase

wagirl — Sat, 05 Feb 2022 14:47:51 GMT

I'm not the least bit surprised----gird your loins for more of the same----

Re: Starbucks Price Increase

sann — Sat, 05 Feb 2022 18:53:56 GMT

Not something I do often, but I do like their Caramel Macchiato....hot or cold.

Re: Starbucks Price Increase

hckynutjohn — Sat, 05 Feb 2022 19:50:57 GMT

@MorningLover

While I am not one that frequents this coffee shop, my wife is the opposite. Gotta have her fix, be it hot in the cold weather, cold drink in the warmer weather.

She spends her money how she chooses, as do I. I prefer my instant Folgers to this brand for my mug of coffee. While I have had their high dollar straight coffee, for me my instant tastes a whole lot better for pennies a cup.

Along with other prices raising for several different reasons, it should only be expected it would effect these, to me, overpriced cups of coffee(?)

hckynut 🏒

Re: Starbucks Price Increase

teganslaw — Sat, 05 Feb 2022 20:03:43 GMT

I like Starbucks coffee and will occasionally buy them even if prices do increase. I can't stand instant coffee; it's like water, only plain water is better.

Re: Starbucks Price Increase

speedy girl — Sun, 06 Feb 2022 05:30:09 GMT

I always brew my coffee at home but if I do go out for it, I give my business to the little private owned coffee stands. I like to give them my business since I'm not a Starbuck fan but I think prices are going up at all of them.

Re: Starbucks Price Increase

Cakers3 — Sun, 06 Feb 2022 15:58:30 GMT

@speedy girl wrote:
I always brew my coffee at home but if I do go out for it, I give my business to the little private owned coffee stands. I like to give them my business since I'm not a Starbuck fan but I think prices are going up at all of them.

@speedy girl Same here. Although the only time we drink coffee outside the home is when we eat out, which is very seldom.

The first time I had a Starbucks coffee it was the last time, although grandson likes a frappacino so we have had a few with him. Still not a fan.

Re: Starbucks Price Increase

MorningLover — Sun, 06 Feb 2022 16:11:42 GMT

I've cut way back on drinking coffee. I brew a pot of coffee in the morning and that's it for the day. I drink more water thoughout the day.

I've been a Starbucks coffee drinker for years but I've been weaning myself off of it. In the past year I started buying Costco's Kirkland House Blend. I wasn't sure if I liked it but I've gotten use to it. I do mix Kirkland House Blend with a small amount of Starbucks Cafe Verona or Sumatra added to it. Buying less Starbucks and saving more bucks!

Kirkland Signature coffee roasted by Starbucks

Re: Starbucks Price Increase

qvcfreak — Sun, 06 Feb 2022 16:17:56 GMT

I make my own Medium Roast with a little sugar and a touch of regular cream, pour in my Yeti and delicious.

Starbuck lines are crazy long in my area.

Re: Starbucks Price Increase

LisaMofSLC — Sun, 06 Feb 2022 17:54:35 GMT

I love Starbuck's fraps. But I bought the 3-can set of Frozen Bean floavours from QVC and make my own fraps now. I can add ice creme or just use ice. They may not be entirely healthy but when it's warm out, they sure taste good.

Re: Starbucks Price Increase

VanSleepy — Mon, 07 Feb 2022 06:08:38 GMT

There's one price increase that won't affect me. Have never been to Starbucks except one hotel where that was the only option.

Re: Starbucks Price Increase

CrazyDaisy — Mon, 07 Feb 2022 11:06:01 GMT

Prices are going up everywhere. Starbucks is a luxury, one that may be pricing themselves out of business. Have stopped a handful of times, did not like their coffee. For those who enjoy it, hope you can continue to afford them. On the flip side perhaps those long lines will get shorter.