Starbucks is hiking drink prices by a national average of 1 percent beginning today, representing the first price jump for the company’s drinks in 18 to 24 months.
The company says the price increases will affect only about one third of Starbucks’ drinks, and price and product changes will vary based on store location. The company currently operates some 11,000 U.S. stores.
While coffee naturally only represents a small percentage of Starbucks’ operating expenses in the U.S., the price hike comes as coffee prices worldwide have reached their lowest in three years. In its announcement to investors last financial quarter, the company actually cited lower coffee buying prices as helping to increase its operating margins.
Visit Bloomberg for a 19-year timeline showing Starbucks’ price increases.