Caffeine addicts will soon be paying more for their daily fix. Starbucks has announced that it will be raising prices in New York, Boston, Dallas and Atlanta.
The international coffeehouse will be raising prices by approximately one percent, according to reports. “These adjustments are the result of balancing the cost of doing business with competitive dynamics in these markets,” Spokesman Jim Olson told Reuters.
Starbucks currently has over 17,000 stores in more than 55 countries. According to reports, the company has not raised prices in this manner since 2007. Some drink prices will remain the same, including the 16-ounce size of coffee. Others, however, such as the 12-ounce cup will be raised by about 10 cents.
Olson told The Christian Post, “We approach pricing on a long-term, product-by-product, market-by-market basis. Starbucks takes a holistic approach to value which includes the quality of our coffee, food, and products we sell as well as the quality of the experience we offer our customers.”
The company, named for a character in “Moby Dick,” first opened in 1971 as a store in the Seattle market. Its mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
While Starbucks strives for equality in the workplace and an economically responsible practice, there have been problems. Critics have cited a case in Ethiopia where Starbucks refused to acknowledge an original patent. Others fear that the mega-corporation will put smaller, local coffeehouses out of business.
One such coffee shop in Manhattan, the Bean, fought back against a Starbucks takeover. While the Bean’s owner, Ike Escava, has said that he will be moving across the street, he has no plans to close his shop. As business partner Sammy Cohen told The New York Times, “We know what the customers want before they even say it. We know them, we know their kids, and we know their dogs.”
No word yet on how customers are reacting to this new price change.