Local coffee roasters and retailers are painfully aware of the escalating costs of coffee bean and other food prices over the past year. At least the big chain competitors are not exempt from price hikes. Starbucks and McDonalds have both announced that the new year will involve raised prices for coffee drinks.
Here are the specifics on Starbucks, from Investor Place:
The company is raising prices about 1%, on average, in some of its most popular markets in the Northeast and Southwest. Cities such as New York, Dallas, Atlanta and others are the big targets. As one example, a 12-ounce cup of coffee will go up in cost by 10 cents, a Starbucks spokesman said.
This price hike at Starbucks comes after a rash of other increases. Some drinks in California and South Florida became pricier in November, so those regions were excluded from this recent increase. That’s after Starbucks raised prices in 2010, then again in early 2011.
Investor Place editor Jeff Reeves does note that despite the price hikes, Starbucks has seen 10 straight quarters of profit increases.
The full story: Investor Place