Starbucks hikes prices on some drinks 5 to 20 cents

Starbucks is raising the prices of many beverages by about 1% starting Tuesday.

Starbucks said it is the first price increase in a year-and-a-half to three years for some of these drinks.

The cost of most affected drinks will increase somewhere between a nickel and 20 cents, according to the company.

A tall latte in this zone will see an about 10 per cent hike of 30 cents per cup.

Prices for a few drinks, though, are expected to remain the same.

Indeed, the area is now experiencing a very strong economy due to its technology boom.

“”Quartz ventures a guess as to what that actually means: “[It] isn’t just coffee prices, but also increase in other costs, notably rent, labor, and other operating expenses”.

Last week, J.M. Smucker Co. said it had lowered the price of its bagged Folgers and Dunkin’ Donuts coffees by 6% to reflect lower coffee costs. The new price boost comes as Arabica coffee bean prices are falling, the Wall Street Journal reported.

Prices are not being raised on any food items, Passe said.

An example of this is Chipotle Mexican Grill, Inc.

The price hike is even larger for those in Seattle, where the company originates. San Francisco, which now has a minimum wage of $12.25, saw its biggest price increases. However, it would apply to only 10 percent of beverages in Starbucks’s Canadian menu.

Starbucks stock has been on a tear. Starbucks gained more than 32% of stock value year-to-date.

Starbucks gained 0.1 percent to $54.31 at the close in New York.