Starbucks is planning to hike its prices this year, its third increase since October, as large U.S. restaurant chains try to blunt the impact of the most ferocious inflation in decades by passing costs along to consumers.
Fast-food restaurants hiked prices 8% last year, federal labor data show. The Consumer Price Index, a key gauge of inflation that looks at a basket of goods, rose 5.8% in 2021.
Starbucks didn’t say how much it plans to increase prices, but the cost of a cup of its brewed coffee has inched steadily upward. The company had already boosted prices in October and again last month, executives said on Tuesday.
The brewed Venti-sized cup of coffee stood at $2.45 in 2021, according to several menu sites. But currently, the same cup of coffee in some locations will set you back $2.95, or an increase of 20%.
The pandemic brought inflationary pressures and staffing issues, both of which “were amplified, well in excess of our expectations,” by the recent surge in the Omicron variant, Kevin Johnson, the company’s president and CEO, said on an earnings call Tuesday.