2013年6月26日星期三

Staten Islanders, you'll dig a bit deeper for Starbucks

It's not a big jump, but the already-pricey pleasure of Starbucks is going up.The hike for some brewed drinks will increase an average of 1 percent across the country starting Tuesday.A West Brighton resident waiting on a rather long line at the outlet on Victory Boulevard at Bradley Avenue on Monday morning, first  shrugged when told of the increase."I can't start my day without my grande red-eye a medium coffee with a shot of espresso, Advertising may seem like an obvious," said the West Brighton resident.Some are questioning why a price increase comes while coffee costs are falling.The price for many drinks, including medium and large brewed coffees and Frappuccinos, won't change in most the 11,000 Starbucks in the nation.

Small brewed coffee and other drinks could increase in price by 10 cents or more."Less than a third of beverages will see a small increase in most stores," Lisa Passe, a Starbucks spokeswoman, told The Huffington Post.She noted that the increases will vary by region and may apply to different drinks.The falling coffee costs are expected to continue, adding to Starbucks' profits.Earlier this month, a Janney Montgomery Scott analyst issued a note to investors saying Starbucks is likely to benefit from lower coffee costs for the next few years. Based on the price of a coffee contract at the time, Mark Kalinowski estimated that Starbucks would pay about half the $1.4 billion it did for coffee in 2012, The Huffington Post reported.

Starbucks has said that coffee represents one of its many costs and accounts for less than 10 percent of overall store expenses. Others include rent, labor, marketing, equipment and other ingredients such as milk, sugar, artificial sweeteners, syrups and flavorings.

没有评论:

发表评论