Prepare to pay more for your morning fuel as Starbucks has just announced that it’s raising prices starting today (July 7). Most of the 50 states will only have to pay 1 percent (1%) more for their cups of coffee, but if you happen to live in Seattle you may be in for an unpleasant surprise.
Most of the company’s stores will increase the price of a hot, caffeinated beverage by no more than 5 to 20 cents, depending on the drink and the state, as the coffee chain has admitted that prices vary depending on each region.
Management feels that the change is justified, with Lisa Passe, Starbucks spokeswoman, gaving a statement saying that “For the majority of impacted beverages, such as Tall brewed coffee and Grande Latte, this is the first adjustment in [roughly] two (2) years”.
She went on explain that packaged coffee, food, and certain drinks such as the Frappuccinos and the Grande-sized brewed coffees won’t see a change in price, however the above mentioned Tall brewed coffees and Grande Lattes will be 10 cents more expensive in most of the coffee chain’s stores.
But if you’re staying in Seattle, you will have to pay 3.5 percent (3.5%) more for your cup of coffee. The area includes 300 stores that will be affected by the change, charging somewhere between 10 and 20 cents more than the rest of the US stores. For instance, a tall latter in Seattle will now be 30 cents more expansive than it used to be.
Starbucks did not divulge the reason why Seattle is seeing more of an increase in prices, but Chris Mefford, Community Attributes CEO, a Seattle company that offers data and economic analysis consultancy, gave a statement theorizing that the company feels confidents Seattle residents can afford to pay a little extra for their small luxury items.
Indeed, the area is currently experiencing a very strong economy due to its technology boom. Even labor and real estate costs have risen, with the 2014 minimum-wage reaching $15 per hour.
As for Canadian stores, their beverages will see an increase of 10 to 20 cents. However, Carly Suppa, another Starbucks spokeswoman has assured that only 10 percent (10%) of the caffeinated beverages on the Canadian menu will be affected by the change.
It’s worth mentioning that it’s only been a year since the company last raised prices across the United States. Good news is that the new prices will only be applied to stores that are being operated directly by the chain. Third party stores such as those licensed by supermarkets will not raise their prices.
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