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Chain raising prices on some popular drinks; lowering cost for basic beverages
Coffee lovers take warning – Starbucks Inc. (Seattle) announced some of its chain locations in several cities have started charging up to 30 cents more for some specialty beverages, while the company is charging less for other basic drinks. According to The New York Times, price adjustments will be made at stores nationwide in coming months with the price for beverages like Frappuccinos and caramel macchiatos increasing an average 10 to 15 cents. The chain’s most popular 12-ounce lattes and brewed coffees will cost on average 5 to 15 cents less. The Times reports this is the first time Starbucks has lowered prices, while it last increased prices by 5 cents in 2007.
“The goal of it is really to continue to find ways to balance the value we’re providing for our customers with the business responsibilities,” Starbucks spokesperson Valeria O’Neil told The Times.
The coffee chain is also experimenting with other recession-battling moves, including selling alcoholic beverages at a few Seattle locations, redesigning some of its menus and offering paired food and drink promotions. For the third quarter ending June 28, same-store sales at Starbucks declined 5 percent compared to the same period last year, a slight improvement from the 8 percent decline reported during the second quarter.
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