Advertisement

Starbucks to raise beverage prices

SEATTLE, Sept. 28 (UPI) -- Starbucks, the Seattle-based chain of coffee shops, said it was raising its beverage prices for the first time since August 2000.

The company, the largest such chain the world, will hike prices in the United States and Canada 11 cents a cup on average, starting Oct. 6, the Wall Street Journal reported Tuesday.

Advertisement

Starbucks Chairman Howard Schultz said the price increases stem from the rising price of milk and other commodities plus increasing healthcare costs.

The price hike may help the company's profit margins. Last month, Starbucks reported its first slip in monthly same-stores sales growth at company-owned units in 10 months.

But charging more also could hurt Starbucks' market share.

Earlier this year, roughly two-thirds of regular coffee-house customers surveyed by market research firm Mintel International Group said that gourmet takeout coffee is too expensive.

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement