Starbucks Just Raised the Price of Its Coffee
This week, the coffee chain increased the cost of a cup of joe between 10 cents and 20 cents, the Wall Street Journal reports. A tall size of Starbucks coffee will now range from $1.95 to $2.15.
The price hike, which will reportedly not affect any other drinks, is being implemented at 8,000 locations nationwide. The cause boils down to a 9% increase in operating expenses and a 13% cost of sales compared to last year, a Starbucks spokesperson told WSJ.
Earlier this year, the company announced that they would be cutting back on limited-edition beverages like the polarizing Unicorn Frappuccino by 30 percent. Instead, Starbucks has since rolled out a new line of drinks joining their permanent menu, including the Triple Mocha Frappuccino, Ultra Caramel Frappuccino, and the latest addition, the Serious Strawberry Frappuccino.
The coffee giant also announced on Monday that the executive chairman Howard Schultz will be stepping down at the end of the month.
“One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back,” he told the New York Times of the news. “I’m not exactly sure what that means yet.”
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Schultz admitted that while he is a “long way from making any decisions about the future,” running for president in 2020 is not out of the question.