Starbucks hikes prices on coffee, espresso, tea lattes

Starbucks is increasing prices on brewed coffee, espresso and tea latte beverages.

Fortune revealed that beginning on Tuesday, Starbucks will introduce an increase of 10 to 20 cents on certain sizes of brewed coffee.

The company says pricing is in part “continually evaluated in order to balance business needs”.

Starbucks raised prices Tuesday on coffee, espresso and tea lattes a day after CEO Howard Schultz announced a wage increase for all USA employees.

It wasn’t immediately clear whether the price increases related to the compensation increases. However, the costs of 65 percent of its drinks remained the same.

In a short news release, the retailer estimated the average customer ticket will increase about 1%.

Getting your Starbucks fix will now cost you more. A year ago the company raised prices between 5 and 20 cents.

In Seattle, however, Starbucks coffee has experienced more considerable price hikes over the past year than anywhere else.

The specific increase for each worker will be based on where in the country they work, as well as market factors. The company announced on Tuesday that it made a “small price adjustment” in most USA stores.

The price increase out rollout hasn’t been a clean one for Starbucks. Employees who have been with the company for at least two years will also get an increase in stock awards. Starbucks prices vary by location, with the highest prices typically seen in major cities.

Starbucks shares gained 16 cents in early morning trading on Tuesday, reaching $56.75.