Consumer Watch: Starbucks price hike

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by Andy Treinen

WHAS11.com

Posted on June 23, 2014 at 5:10 PM

LOUISVILLE, Ky. (WHAS11) -- It wasn't the jolt Starbucks customers were expecting as the company is caffeinating it's prices with a 5 to 20 cent price spike per cup expected. Up to $1 more may be tacked onto packaged coffee.

Surging bean costs have driven up other brands' coffees, but that's not what's supercharging Star bucks costs.

Just last week, Starbucks CEO Howard Schultz told Rebecca Jarvis he was optimistic that prices wouldn't budge. Days later, an announcement was made that the cost of a venti cup and more is going up.

Prices for medium and large coffees, known in Starbucks-ese as grande  and venti will be especially frothy up between 10 and 15 cents.

Tall and venti lattes and mocha drinks will go up 15 to 20 cents. In New York city, a venti latte can cost up to a whopping $4.65 before tax.

In an email over the weekend, Starbucks blamed "competitive dynamics" and "cost structure" for the rise. These are costs like materials, labor and rent space.

Whatever the cost, it's now yours.

If you have a consumer issue you’d like us to look into send an e-mail to consumerwatch@whas11.com.

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