Starbucks Raises Prices Of "Complex" Drinks, Cuts Costs Of Latte, Regular Coffee

SEATTLE — Starbucks Corp. is raising prices on certain harder-to-make beverages – and cutting the costs for simpler ones like a plain cup of coffee, the company said Thursday.

The price hikes, on average between 10 and 15 cents and as much as 30 cents, went into effect Thursday.

"This is as a part of our comprehensive approach to providing the value while balancing our business responsibilities," said spokeswoman Valerie O'Neil.

The increases will be added to "complex" drinks, like the company's frothy blended frappuccino.

More basic beverages – the latte and plain coffee, among others – will see prices decreased by 5 to 15 cents.

Still, more prices will increase under the plan than will be lowered or remain the same.

Starbucks won't say how many cities were affected by Thursday's increase but said the price hikes will eventually roll out nationwide in the coming months.

Officials at the Seattle-based coffee giant said prices will vary by region to cover higher labor and material costs.

Starbucks shares rose 10 cents to $19.22 in trading Thursday.

Comments

[BabblingBrooks]

Dang! There goes my mocha cream whatever...

[SangZe]

The coffee just ain't that good, never was.

[fabricnthreads]

I like Starbucks coffee because they serve it at a drinkable temperature. I don't have to wait 15 minutes for it to be cool enough to drink.

It is good coffee, and I like their mochas, caps and fraps. But the money factor is going to hurt them. They pricing themselves out of the market they created. I will likely buy there less and less.

I always tip the server. The 50 or 60 cents I get back in change always goes to the servers, and helps an individual. Now the corporation will be taking a portion of it. They are losing their focus as a company.

[publicradio]

country is going down the tubes and there's nothing we can do about it

good articles: http://www.iamned.com

[shotgunblast]

I'm glad I don't drink coffee. 6 bucks for a large cup of flavored coffee? Wow. Really? Sheep.

[Kmandel]

Would u like a simple or complex coffee? Give me a break.

[Megan Outlaw]

whats so complex about pushing a syrup pump. Smart move starbucks in the economy...

[liberalbug]

The "barista" has to turn on the blender as well. That's TWO steps, hence the price increase. Geez!

[Megan Outlaw]

I think starbucks needs a lesson on business... Shultz go back to business school.. Such a crappy move in this economy.. plus.. i didn't know that pushing a syrup pump was soo "complex" ..

[Management Insights]

This is a smart move by Starbucks as I explain on my blog:
http://markhughes.typepad.com/insights/2009/08/complexity-at-starbucks.html

[OurAnnoyingWorld]

I didn't realize pouring frappachino mix over some ice and then blending it was considered "complex." It's a good thing all Starbucks Baristas are required to have PhDs.

[KarateKid]

New Yorkers: Porto Rico Importing.....best kept secret for coffee beans. Brew your own, it's worth the little time it takes, and PR has great prices and lots of variety. Don't drink that Starbucks junk.

[your1d]

Obama already failed to reform the banks & wall street; now he's failing with heath care, too. So much for change you can believe in.

good articles: http://iamned.blogspot.com ...

[NevaforLeadership]

Obama never promised to reform banks and Wall Street. He did acknowledge the importance of Wall Street and point out that Wall Street must be good for Main Street. He also talked about the need for more regulation.

He inherited a bank financial meltdown, with credit at a standstill. He continued Bush's bailout plan, enacted his own stimulus packages and set about increasing regulation.

Obama has managed to halt the worst recession since WW2, and it is now coming to an end.

The banks don't need reforming. The derivatives market needs regulation. It is vital that any regulation not kill the derivatives market, because it has become an inherent aspect of financial well being.

As for healthcare, Obama is battling Republicans who are intent on bringing down the initiative by any means -- legitimate or otherwise. Obama's first initiative is to have everyone covered. He will prevail.

US healthcare reform is so difficult, because so many interests are involved. No president can go in, wipe the slate clean and start again without enormous damage. It has to be a patchwork reform. The corollary is that these interests have contributed to US healthcare being the most advanced in the world.

Please tell us what you think should be done without any harm to any sector.

[liquidzen]

off topic

[Fabini]

OLD:
Double shot Cafe Au Lait skim $4.25
Cup of Coffee $1.50

NEW:
Double shot Cafe Au Lait skim $4.50
Cup of Coffee $1.35

Brilliant!

[KarateKid]

Burnt tasting coffee is not worth even a dollar. Dunkin Donuts make way better plain coffee.

[IslandChica]

Do you happen to know if they've lowered the price for a cup of tea?

[SpencerCat]

NOPE. My large iced green tea went from $2.10 to $2.30. I guess that's because the barrista is required to SHAKE the iced tea. Maybe if I ask them just to pour it in the glass and not shake it up, they might cut the price back.

[NWBrunette]

Please. There is absolutely nothing on the Starbucks menu that comes anywhere close to "complex". Get a grip.

[KC the SuperDog]

I beg to differ. I'm just a plain old coffee drinker - I ask for whatever they've categorized as BOLD, order it saying SMALL, MEDIUM, or LARGE (this is America for goodness sakes), tell them my name, hand over the bills and let them keep the change. Then.... I wait and wait and wait and listen to all the other crazy orders ahead of me that take almost 5 minutes to make. Call them complex, fancy, whatever..... I hope the increase prices decrease demand somewhat. Really, Starbucks should have an "express lane" for people who just want the plain, simple stuff.

[KarateKid]

You actually wait in line for that cr@p coffee?

[tcordier]

What is wrong with half the people here? This is a smart move on their part, they're not just doing this out of the blue: they certainly have data to support this sort of change. The logic is that people who are already spending $3.50-$4 on a drink wont mind a small percentage increase in price (this is a 3-5%ish increase) while the less fancy drinks folks will appreciate the 7-10%ish cut on their drinks.) Remember when you buy a nonfat vanilla soy triple shot venti latte, you're telling them you care, and the reality is that they will make more money using this method.