Starbucks (SBUX) Gives Gift of Higher Prices for Upcoming Holiday Season
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Starbucks Corp. (Nasdaq: SBUX) is making a play on the economic recovery, with price hikes in several key markets.
Trying to get a handle on rising coffee prices, Starbucks boosted drink prices in the Pacific Northwest, Southern California, the Midwestern U.S., and Hawaii. Major cities seeing an immediate impact include Los Angeles and Chicago.
One source reported the price of a small latte increased 4 percent, or 10 cents, to $2.75 at an LA Starbucks. Another said a tall coffee in Chicago is now 15 cents more expensive.
Following strong quarterly numbers issued in early November, Starbucks has been dealing with coffee prices that have ripped over 44 percent -- or more in some cases -- since the start of 2010. Having given up blanket price increases a few years ago, Starbucks now adjusts prices in individual markets to better meet demographics without alienating customers.
Starbucks shares are trading about 1 percent lower along with broader markets Wednesday morning.
Trying to get a handle on rising coffee prices, Starbucks boosted drink prices in the Pacific Northwest, Southern California, the Midwestern U.S., and Hawaii. Major cities seeing an immediate impact include Los Angeles and Chicago.
One source reported the price of a small latte increased 4 percent, or 10 cents, to $2.75 at an LA Starbucks. Another said a tall coffee in Chicago is now 15 cents more expensive.
Following strong quarterly numbers issued in early November, Starbucks has been dealing with coffee prices that have ripped over 44 percent -- or more in some cases -- since the start of 2010. Having given up blanket price increases a few years ago, Starbucks now adjusts prices in individual markets to better meet demographics without alienating customers.
Starbucks shares are trading about 1 percent lower along with broader markets Wednesday morning.
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