NEW YORK – Starbucks is raising prices starting Tuesday, with the increases ranging from 5 to 20 cents for most affected drinks, the company said.
A small and large brewed coffee will each go up by 10 cents in most areas of the country, Starbucks says. That would bring the price of a large coffee to $2.45 in most U.S. stores.
Last week, the J.M. Smucker Co. said it would cut prices for most of its coffee products because of declines in future prices for unroasted coffee beans. In an e-mailed statement Monday, Starbucks Corp. said coffee costs are only part of its expenses, which include rent, labor, marketing and equipment.
The statement said the company continually evaluates pricing to "balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers."
The price hikes mostly affect hot drinks, said Starbucks representative Lisa Passe. That means the percentage of customers affected by the higher prices would likely rise as people start buying warmer drinks when the weather cools.
Prices are not being raised on any food items, Passe said.