Starbucks is a front-runner in the coffee market of today. They are known for their delicious coffee drinks and teas, but they are also known for their high prices. Yet, Starbucks is still one of the top coffee distributors in America. According to USA TODAY, “some 30 million customers visit Starbucks nationwide each week, shelling out $3.50 – $4.00 per trip, on average”. They continue to explain how “Starbucks makes it seem so normal to pay this price for a cup of coffee”. With their prices already on the more expensive side, people will now be pulling an extra eleven cents out of their pocket for their famous cup of joe. It doesn’t seem like a lot now, but eventually that extra change will add up. Why does Starbucks need to raise their ALREADY high prices?
Starbucks plans on increasing their price of coffee. They have not yet specified what type or size of the cup of coffee they plan on increasing the price, nor have they specified the price each individual beverage is going to be after the increase, but as of right now, the price of a twelve-ounce latte ranges between $2.25 and $3. The chairman of Starbucks, Howard Schultz, has said that it is going to be a “modest price increase” across the board at all of their 4,500 stores in North America.
Starbucks has already ...
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...l. Eleven additional cents, for a regular coffee drinker, will eventually add up. In the long run, daily or possibly multiple times daily coffee consumption will not be something all consumers can afford.
Starbucks could take this problem into their own hands by threatening their sugar and coffee suppliers. They could manipulate them into threatening them to buy from another company, causing them to lose money also.
Personally, I do not buy from Starbucks because of their high prices and will continue not to purchase from them because of their rising costs. I believe that many people will also follow this trend and Starbucks may see a decrease in consumer rates and profits. I do believe the price increase could go either way. I think it is going to rely on whether people with high demand for Starbucks out weighs the people who are tired of paying such high prices.
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