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.
Like a non-smoker, you're richer for it.
Peets
I've spent around a thousand bucks on espresso makers -- certainly you can spend more -- and studied all the website and newsgroup threads...the coffee produced by this method was my best.
(Now if you want to make milk drinks like lattes, you still have the problem of foaming the milk. This, IMO, is an UNDERrated problem. Manual frothers do not produce the sort of quality micro foam needed for good drinks. I've had no luck with stove-top steamers -- not enough steam. You may have the same problem with modestly-priced espresso machines.)
A friend of mine here in IN just paid to have her own hay baled @ $9.00 a bale.....with the drought we are having and so many farmers not growing alfalfa and growing corn instead, there is a hay shortage....this hay is to feed her horses but you know it will effect cattle prices...
Good grief...of course, there arent lines like their used to be at my local starbucks.
>>A friend of mine here in IN just paid to have her own hay baled @ $9.00 a bale.....with the drought we are having and so many farmers not growing alfalfa and growing corn instead, there is a hay shortage....this hay is to feed her horses but you know it will effect cattle prices...<<
And dairy prices and soft drink prices and while it may irritate me, nobody in North Atlanta is going to starve over it. The people it kills will be poor and have no voice and Al Gore likely will not even note his connection. There are people who cannot pay double for grain.
What does that tell you about the bottled water market? ;-)
The silly people (99% women) who walk around clutching a bottle of designer water? I was thinking of those suckers too as I typed my post
>>Good grief...of course, there arent lines like their used to be at my local starbucks.<<
To be fair there were a lot less Star Bucks in the olden days.
I have cartoon cut out somewhere. A guy comes home and there is a Star Bucks in his living room. He says” but I was only gone for an hour...”
BTW, if you're interested, the price of Grade III Milk on 3 January (basis nearest futures, effectively spot) was 13.15/cwt. The price, basis nearest futures, late Friday 20 July, was 21.29/cwt.
That's a very modest (cough, choke) 61.9 % increase, and almost all of it due to the ethanol scam.
Been in one and walked out when I saw the stupid prices.
Combine 11 cups of water, a bag (they are typically about 11 oz) of preground coffee, and leave for 11 hours.
____________________
Water is not heated right?
Do you use boiling water, hot water, or room-temperature water?
No...just tapwater. (I used cheap coffee, also. JFG French roast worked very well. Some others were not as good.)
>>Starbucks. Never had one.
Been in one and walked out when I saw the stupid prices.<<
We go every now and then and try something new at Starbucks. Then my wife wife figures out how to duplicate it so I can have great drinks any time and we can entertain better. I am so damn lucky, sometimes I feel guilty.
so when is Dunkin Donuts gonna trust you to put creamer and suger in your own coffee?
>>Very perceptive, Gondram, and very accurate.
BTW, if you’re interested, the price of Grade III Milk on 3 January (basis nearest futures, effectively spot) was 13.15/cwt. The price, basis nearest futures, late Friday 20 July, was 21.29/cwt.
That’s a very modest (cough, choke) 61.9 % increase, and almost all of it due to the ethanol scam.<,
You know, I don’t want to pay 70% more for milk but its not going to kill me.
But at local CVS they put the put the infant formula under lock and key because its already so expensive some women will steal it to feed their kids.
This will likely literally kill some of those kids.
Back in the 70’s many mom & pop diners would offer $1.00 breakfast specials.... eggs, toast, OJ and a coffee with refills. Got to drop a $10 spot now for a Starbucks breakfast...without coffee refills.
Ha! ain’t that the truth?
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