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Published: Thu, July 14, 2016
Economy | By Melissa Porter

Starbucks raises prices on coffee, espresso, tea lattes

Starbucks raises prices on coffee, espresso, tea lattes

When Starbucks raised prices in July 2015, the cost of brewed coffee went up by 10-20 cents in Seattle.

"Starbucks said all pricing is "continually evaluated" on a product-by-product and market-by-market basis".

Starbucks is also "planning a small price increase on select beverages" starting Tuesday, Credit.com reported.

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But it said that 65% of its beverage prices remain the same.

The company had telegraphed the price increases last week when it had inadvertently entered the higher prices into the sales systems of its US company-operated stores, resulting in some customers being charged incorrectly.

The specific increase for each worker will be based on where in the country they work, as well as market factors. The even better news is that those price increases seem to be going to good use, because the company plans to give raises to its USA baristas and managers this fall.

Starbucks CEO Howard Schultz sent letters to each of its 157,000 staff members on Monday to announced the increase in pay. Although the mistake was fixed, some customers were overcharged.

That means within one year, the cost of brewed Starbucks coffee in the Seattle-area has gone up by as much as 40 cents. In addition to a salary increase employees with at least two years of service will now receive double the amount of stock awards that are given out each November.

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