Your Cup of Starbucks Just Got More Expensive

Coffee chain says it has to raise prices to stay competitive

By Sajid Farooq
|  Friday, Aug 21, 2009  |  Updated 12:07 PM PDT
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Your Cup of Starbucks Just Got More Expensive

A fancy cup of coffee at Starbucks is going to cost more starting Thursday.

Starbucks has tried just about everything to push through the struggling economy. The company only generated $2.4 billion in net revenue last quarter.

The coffee mega chain has posted billboards through out the Bay Area promoting the lengths it goes to in selecting the beans that find their way in your cup. It has rolled out breakfast, started serving beer and even created a Fauxbucks to trick corporate coffee haters into their shops.

But the one thing Starbucks had not tried to make money was actually raising prices. Until now.

The Wall Street Journal reports that Starbucks customers will have to pay up to 25 cents more for their morning coffee starting Thursday. Starbucks said in its defense it will lower prices on “more basic drinks.”

In some markets, customers will pay a nickel more for a venti, or large sized, cup of vanilla bean- or coffee-flavored frappuccino; 15 cents more for a venti mocha or vanilla latte; and 25 cents more for a venti caramel macchiato. An additional espresso shot or an extra dose of milk or syrup also will cost another 10 to 15 cents.

Starbucks said the increased cost of doing business forced the company to raise prices.

The coffee maker also sent a memo to baristas warning them to "expect customers to be sensitive to pricing changes in this economic climate," The Wall Street Journal said.

But feel good Starbucks lovers. The first four days of the new prices, the Seattle-based coffeemaker says it will allow customers to pay for the price difference with money from change jars at the register.
 

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