Posted on 07/23/2007 2:06:24 PM PDT by BenLurkin
ANGELES (Reuters) - Starbucks Corp. (NasdaqGS:SBUX - News) will raise U.S. prices on coffee, lattes and other drinks by about 9 cents a cup next week to help offset soaring costs on commodities such as milk and energy, a spokesman said on Monday.
The move marks Starbucks' second price increase in less than a year and comes a month after the coffee shop chain's chief financial officer warned that it would be "very challenging" for Starbucks to meet the high end of its 2007 earnings forecast, due in part to rising dairy prices.
The higher costs have also been a concern for investors, who have sent Starbucks' shares down more than 20 percent this year.
"We're always looking at the business costs, and given the rising cost environment in which we operate we think this is an appropriate time," spokesman Brandon Borrman said.
Starbucks' last price hike of about 5 cents per drink went into effect in October.
The latest increase affects drinks made behind the counter and is effective July 31 at Starbucks' 6,300 company-owned stores in the United States, Borrman said. Licensed stores control their own prices but are expected to follow the move, he added. There are about 3,500 licensed Starbucks stores in the United States.
Prices on bottled drinks, whole bean coffee and food are unaffected.
Good grief; you have to get a home equity loan to afford their products now.
>>to help offset soaring costs on commodities such as milk and
>> energy
Or perhaps, the new minimum wage rates that went into effect this year??
>>I just don’t see how coffee can be any better than a normal cup at home with any machine. To pay 2-3$ seems insane to me.
The coffee today is so controled in those cans it is probably all very good. My only complaint is that it is not hot enough which is rectified by simply placing the glass container on the stove just a bit.
I do like my coffee in the morning. Don’t most of us. But have cut back to about 4 cups a morning. Then I treat myself to a beer at 3 and 5 PM.<<
Some of the ladies in my family make predictably worse coffee than others. Maybe they buy cheaper beans or they skimp on how much to use or the don’t have a good machine or their water tastes funny. So there are variations.
At a Starbucks you are not going to have any of those problems but you can certainly equal the coffee at home with care. And I don’t go to Starbucks that often but it is a nice atmosphere. Big comfy chairs, a fire in winter, all kinds of things to read, chess boards and high speed internet. Sometimes its worth a couple of bucks to have coffee there instead of Waffle House, at least to me.
Its also a way to meet women who aren’t drunk. Or at least it would be if I were still looking. But these days I never go out to a Starbucks because they are trying to recreate my home atmosphere and I’m happy here.
Thanks for the tip. Never thought about that. OK, OK, I'll give it a try.
What products don't continue to rise in price? Seem everytime I purchase something, the price is slightly higher.
I’m saving even more money.
Filtron Cold Brew System
This is almost identical to the 11-11-11 recipe, although supported by some apparatus to make it a neater process.
Personally, I prefer not to use any kind of filter more than a course screen, because I think they generally filter out flavor along with some fine particulate. I've noticed that French press coffee is more flavorful and has more body than coffee passed through paper or other fine filters.
One little heretofore unmentioned benefit of this general approach is that one no longer needs either to grind the beans or to be concerned with freshness, as you use an entire, freshness sealed package each time. This is a huge benefit to my thinking, leaving aside the delicious result.
Reduce the demand, reduce the price, true?
I like Mr. Backyard Bug Zapper Inventer and Mr. Silent Killer Gas Passer.
http://thefuntimesguide.com/2004/10/bud_light_real.php
They’re raising their prices so they can pay their part- time workers health insurance and, with the 2008 election looming, Barack and Hillary are going to need more funding.
I drink\ coffee a few times a month. I really don’t get why Americans are so uptight about coffee grounds. My usual way of making coffee is to simmer it five minutes the night before, let it sit over night, then the morning I pour off the coffee, heat it in microwave or another small pot and leave the grounds behind. I never filter the grounds. They are all left behind
Filtron is $37. Your way does the same, costs nothing unless you have to pay a local bar for an empty one gallon pickle jar
“Now if we can just get the government to start taxing lattes...”
They actually tried doing that in Seattle and there was a great waling and gnashing of teeth. The idea failed.
With coffee shops like this (see link) popping up now I would sale Starbucks stock if you have it. Stabucks has made some bad moves recently. automated the esspresso machine, switched from whole milk to 2%, and now another price increase.
http://seattletimes.nwsource.com/html/localnews/2003535398_coffeegirls22e.html
LOL, I can sympathize. I seem to love the iced chai. It kills me that I’m paying $4 a pop for freaking milk, ice, and syrup!!! LOL For some reason the ones I make at home (with supposedly the same ingredients) taste like a horse’s butt... :( Starbucks is my master!!!
If they can tax my cigarettes, cigars, gas, home, car, and paycheck because they’re “evil”, then by God they can tax lattes.
LOL!
I've used my own espresso machine as well, and it still falls short, even when I buy their coffee.
: \
I know it tastes "burnt", but Peete's, Seattle's, and Coffee Bean just don't do it for me. I could exist on nothing more than three venti lattes a day. (Fights osteoporosis, too! LOL.)
But what really excites me about your technique is your ability to detect, eight or ten hours in advance, the approach of the desire for that occasional cup of Joe! (The last time I was so surprised a any such discovery of personal minutia was when I became aware that a mid-level executive of a mamouth computer company, who is a slight acquaintance of mine, maintains his personal DB -- to-do lists, addresses, and such -- in a little pocket notebook which he keeps organized by drawing intricate icons for quick visual identification of the category to which each "record" belongs. I suppose that when he sit in meetings studiously scratching out his little icons, others around the table are intimidated, believing him to be keeping diligent notes on all that passes.)
MMMMmmmmmmmm! Rachel....um, I mean....Donuts!
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