Starbucks to Raise Prices
August 20, 2009 by Mark Ellis
Filed under Business
It hardly makes sense on the surface that a business would resort to raising prices to see itself through a deep recession and weak consumer spending, but that is exactly what Starbucks plans to do. While several basic drinks may now be less expensive, Starbucks has already started raising prices on specialty drinks in several stores.
By the end of the year, the price adjustments should already be affecting Starbucks stores nationwide, placing Starbucks firmly in the difficult position of balancing its brand with its customers’ desires to save money. Competition from the likes of McDonald’s, which recently started selling espresso drinks, have forced Starbucks to take drastic measures.
According to a Starbucks spokesperson, the price of drinks that take several ingredients to make, such as their popular Frappuccinos, will rise an average of 10 to 15 cents, or as much as 30 cents in some places. However, the price of Starbucks most popular beverages, such as its lattes and brewed coffees, will drop an average of 5 to 15 cents.
Image: Flickr
