Starbucks plans to increase prices this year
Soon, you might be paying more for your morning coffee at Starbucks.
Starbucks is planning to raise prices again this year in effort to lessen the impact of inflation.
This will be its third price increase since October.
However, for some items prices are already up around 20% since last year.
Starbucks didn't say how much it plans to increase prices, but the cost of a cup of its brewed coffee has inched steadily upward. The company had already boosted prices in October and again last month, executives said on Tuesday.
The brewed Venti-sized cup of coffee stood at $2.45 in 2021, according to several menu sites. But currently, the same cup of coffee in some locations will set you back $2.95, or an increase of 20%.
The pandemic brought inflationary pressures and staffing issues, both of which "were amplified, well in excess of our expectations," by the recent surge in the Omicron variant, Kevin Johnson, the company's president, and CEO, said on an earnings call Tuesday.
And there might not be just one price hike in 2022 for Starbucks, but several, with Johnson saying the company has "additional pricing actions" planned throughout the year.
Consumers aren't cutting back on coffee, though: Starbucks said revenue in the most recent quarter jumped 19% to $8.1 billion.