Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Starbucks Raises Prices in New York to Recoup Higher Costs

Customers sit in a Starbucks Corp. coffee shop in New York. Photographer: Peter Foley/Bloomberg
Customers sit in a Starbucks Corp. coffee shop in New York. Photographer: Peter Foley/Bloomberg

Jan. 3 (Bloomberg) -- Starbucks Corp., the world’s biggest coffee shop operator, raised prices on certain beverages in the U.S. Northeast, South and Southwest to recoup higher costs.

In markets such as New York City, the price of tall brewed coffees and tall lattes increased by 10 cents, while the price for grande brewed coffees stayed the same, Jim Olson, a company spokesman, said today in an e-mail. The changes are the result of “the cost of doing business,” which includes distribution, materials and commodities, he said.

Starbucks, along with other restaurants, has grappled with higher raw ingredient costs during the past year. In November, Seattle-based Starbucks raised prices at cafes in the Pacific Northwest, Midwest and Southern California to help recoup higher commodity and rent costs.

Along with New York, today’s price increase includes the Atlanta, Dallas and Albuquerque, New Mexico, markets, Olson said.

Rising commodity costs, primarily for coffee beans, narrowed profit by 7 cents a share in the quarter ended Oct. 2, the company said in a statement on Nov. 3.

Starbucks, which has about 10,800 stores in the U.S., dropped 1.6 percent to $45.29 at the close in New York. The shares gained 43 percent last year.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.