Your morning cup of coffee just got a little pricier. Starting today, Starbucks is raising its prices anywhere from 5-20 cents. The coffee chain told ABC that the purpose of this increase was to “balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers.”
However, the underlying reason is because the price of Arabica coffee beans has increased almost 100%. In April, they went from 106 cents to 220 cents due to prolonging droughts and recent floods in Brazil. Although the prices did decrease since then, they are expected to rise again due to increasing demand for premium coffee beans and the early outbreak of El-Nino, the oceanic disturbance, which can intensify weather conditions in Southern Brazil.
Luckily, the price increase will mostly only apply to hot drinks and are expected to affect less than 20% of customers. So, no need to add to your coffee fund just yet. That percent will increase in the Fall when your iced vanilla latte turns into a hot pumpkin spice latte. But don’t worry, Starbucks will not be raising their price on any food items. The chain actually hopes to increase their food item sales this way.
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