NEW YORK – That Starbucks habit has gotten a little more expensive.
Starbucks Corp. said Thursday it has raised the price of a regular drip coffee by 10 cents to 20 cents in most U.S. stores, putting a small brewed coffee at $1.95 to $2.15 in most locations.
The company said prices haven’t changed on drinks such as lattes and iced coffees in most stores.
Overall, Starbucks said it has increased prices by an average of 1 percent to 2 percent in the past year, which it said was in line with industry practices – though the increase may be higher for particular drinks. The company has also rolled out specialty drinks over the years that tend to cost more.
Sara Senatore, a senior analyst who covers the restaurant industry for AB Bernstein, noted the average annual price increase for a tall brewed coffee at Starbucks has been 1.7 percent over time. She said that is similar to overall inflation rates, meaning the price hasn’t risen in real terms.
Starbucks said it is always evaluating prices and that the latest change “was not related to last week’s store closures and trainings.” The company closed its U.S. stores for several hours last week to train employees on bias awareness after an outcry over the arrests of two men in Philadelphia earlier this year.
Subscribe to the Morning Review newsletter
Get the day's top headlines delivered to your inbox every morning by subscribing to our newsletter