How Starbucks beats the cost of living

Seattle – Although coffee prices are on the wane, Starbucks Corp. is facing rising wage and rent expenses. The retailer is passing at least some of those costs along to the consumer with higher prices on some beverages.



Prices on affected beverages will go up from five cents to 20 cents, representing about a 1% increase in the cost of an average order. Specific increases will vary by market, but in most U.S. stores prices will rise on 12-ounce and 20-ounce brewed coffees and 16-ounce lattes. Packaged coffee beans will not have their prices changed.



In other Starbucks news, the retailer is expanding the availability of small-batch cold brew iced coffee as a core menu item in participating stores across the U.S. and Canada. Starbucks baristas freshly grind cold brew blend coffee, created specifically for the cold brewing method, and then steep it in a container of cool water for 20 hours. This process, which differs from traditional iced coffee brewing methods, results in cold coffee concentrate that baristas measure and top with water and ice and serve unsweetened.



In addition, the Puget Sound Business Journal reports that Starbucks is collaborating with social network Meetup, which organizes adults online to participate in “real world” group activities, to host evening events at Starbucks stores which serve alcohol. Starbucks is offering Meetup group members a 25% discount on food purchases when they buy a drink and reserved community tables. Twelve Seattle-area stores are participating in a pilot.