Starbucks price hike: 10 cents more for 'tall' in New York – but not L.A.

Starbucks says rising costs for coffee and fuel mean it must increase the price for some of its 'tall' coffee cups. But the Starbucks price hike is not uniform across the country. 

Mark Lennihan/AP/File
Customers line up at a Starbucks in New York.

If you like to wake up and smell the Starbucks coffee, you may now be waking up to some higher prices.

The Seattle-based chain raised prices for many US consumers Tuesday, saying the price hikes reflect its own rising costs for things like coffee, fuel, and other commodities. But the price changes aren't uniform on all beverages or in all parts of the country.

Prices went up in Boston, New York, and Washington, and most Southern states, but are not changing in California or Florida.

The company described the move as price hikes of about 1 percent, but some cups of coffee are rising by 10 cents a cup. Starbucks' hasn't done an across-the-board price increase since 2007.

The price boost comes at a time when inflation is a significant worry for consumers. During the past 12 months, food prices in the US are up an average of 4.6 percent, and overall inflation in consumer prices was 3.4 percent, according to the US Bureau of Labor Statistics.

Consumers have seen prices rising over the past year on everything from fuel to health care, college tuition to clothing.

Food chains like McDonald's have been part of the trend – and something consumers easily notice.

Starbucks has prospered since the US recession ended, as consumers have returned to small luxuries like lattes. Its stock price is up more than 20 percent from where it stood early in 2007, before the recession.

But like many US businesses, it faces the challenges of a weak economy creating a drag on consumer demand, as well as and rising costs.

The price for a "tall" coffee will go up 10 cents in affected regions, and the chain will raise prices on about six other beverages. But beverages that are "grande," the next size up, won't change.

For some companies, price hikes have succeeded at boosting profits in a tough business climate. In some other cases, price hikes have backfired as consumers shop elsewhere.

Following the price news, Starbucks' share price was down slightly in afternoon trading.

The company is also seeking to grow products by expanding overseas, increasing the number of products, expanding its loyalty program, and boosting its presence in grocery stores and other retailers.
• Material from the Associated Press was used in this report.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to

QR Code to Starbucks price hike: 10 cents more for 'tall' in New York – but not L.A.
Read this article in
QR Code to Subscription page
Start your subscription today