The eCommerce Times reports that Starbucks had indicated in July it would likely raise drink prices for the first time in nearly four years to keep up with costs, although it didn't say how much or when. The confirmation came after Seattle brokerage McAdams Wright Ragen sent a note to investors, saying a Starbucks employee confirmed the increase.
McAdams Wright Ragen analyst Dan Geiman said he doesn't believe the increase will hurt business. "It's 11 cents," he said. "That's not a huge amount when you're already paying a few dollars-plus for your beverage." The increase will make Starbucks the most expensive latte among large coffee retail chains, at least locally.
Seattle Caffeine Index- In Seattle, a single-shot, 12-ounce latte yesterday cost $2.46, including tax, at Peet's Coffee & Tea and $2.57 at Tully's. After Starbucks raises its prices, the same drink will go for $2.62, including tax -- a nickel more than its nearest large competitor. Meantime, the coffee retailer yesterday joined with Washington Mutual. Latest News about Washington Mutual to open a joint bank branch and cafe in Sarasota, Florida.
Washington Mutual spokeswoman Nova Barnett said the two are side by side in an open space. It's a pilot program, and they've made no plans yet to open other locations together. A Starbucks spokesman said the company opens stores in many different places based on "where our customers expect and want us to be." Those locations are in bookstores, airports, grocery stores and other banks - including Wells Fargo [story by Monica Soto Ouchi]
Pretty soon Starbucks will be opening stores inside Peet's and Tully's!