On August 21, 2009
Starbucks Gets Cheaper and More Expensive
“Starbucks Corp. customers can expect to pay up to 25 cents more for their caffeine fix,” says the Wall Street Journal. Starbucks “is cutting prices for the first time,” says Reuters. Both statements are correct. Basically, cheaper drinks will become cheaper, and more expensive drinks will become more expensive. The cost of a cup of coffee or a small latte will drop by a nickel or two, while the cost of large drinks, frappuccinos and extra espresso shots will go up. The changes will vary by market, but spokeswoman Valerie O’Neil declined to give details. CEO Howard Schultz announced this plan in April during the second-quarter earnings call. “We will be fine-tuning our pricing in several key markets to better…
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