Giada Amendolara '25
Starbucks prices have gone way up. Most Starbucks prices increased by $0.30 – $0.70 per item, and more increases are on their way. The average price increase on the Starbucks items compared was 9.85%., while, according to the New York Times, “the price of food at fast-food restaurants rose 8%, the biggest jump in more than 20 years.”
Starbucks raised their prices in October 2021 and again in January 2022, and more increases are on their way. Starbucks will continue to increase prices this year, according to the New York Times, blaming inflation, the pandemic, supply chain disruptions, and rising labor costs.
“We anticipate supply chain disruptions will continue for the foreseeable future,” said Kevin Johnson, the president and chief executive of Starbucks. “We have additional pricing actions planned through the balance of this year, which play an important role to mitigate cost pressures including inflation.”
Prices are increasing in most restaurants for the same reasons given by Starbucks, but then Starbucks made announcements that it will schedule more price hikes again, even though its profits have grown by 30%. According to Starbucks, “profit rose more than 30% in the last three months of 2021 while revenue rose 19% in the same period.”
Surprisingly, most customers are willing to pay more and according to the New York Times, Starbucks Executive John Culver said the recent price increases haven’t made “any meaningful impact to customer demand.” Starbucks will continue to raise prices and continue to increase its profits by increasing costs to its customers.
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