Starbucks Raises Prices On All Drinks

Coffee-craving students will have to watch their wallets next time they walk into a Starbucks; the ubiquitous coffee joint has just decided to raise its prices nationwide.

As of Wednesday, Starbucks Coffee has increased prices on all drinks by about 10 cents. A tall house blend, once $1.40, is now $1.50, with lattes, cappuccinos, and frappuccinos also up by an average of 11 cents. The price of baked goods and merchandise will be unchanged.

“Starbucks has not taken a system-wide price increase on beverages since August 2000,” wrote Starbucks spokesman Matthew Morris in an e-mail. “Based on increased costs throughout the business, and not any one specific cost, Starbucks raised beverage prices by an average of 11 cents in Company-operated stores in North America.”

Brian R. Omelia, a supervisor at the Church Street Starbucks said that the prices are going up so the corporation can keep up with rising market costs.

“Most prices go up every year in other retail outlets,” Omelia said. “We are just trying to get in line with inflation.”

Omelia also cited the rising price of milk as one of the main causes behind the increase.

“Milk prices have shot up over the past summer,” he said. “If you go to the store, you’ll see that a gallon of milk costs four dollars.”

According to the United States Department of Agriculture, retail prices for a gallon of two-percent milk were $3.23 per gallon in September, up from, $2.86 per gallon a year ago.

Other Harvard Square coffee shops have already adjusted to the higher costs.

Crystal L. Kelley, the manager of the Mass. Ave. Toscanini’s Ice Cream and Coffee, said the store raised prices about six months ago but said that she does not believe that another increase will occur anytime soon.

“The only time we do increase our prices is when dairy prices go up,” she said. “I’m not aware of the dairy industry increasing prices recently.”

Despite the changes in the cost of milk, other businesses have kept their prices the same.

Managers at C’est Bon and the Coop Café said their rates will remain the same, with a small cup of coffee priced at $1.20 and $1.47, respectively.

“A lot of Harvard students can’t afford these higher prices. It’s better for everyone if we keep our prices the same,” said Pierre Sabe, the manager of C’est Bon.

The Starbucks-brand coffee sold at the Dash Café in the Barker Center and the Greenhouse Café in the Science Center will also stay at the same price, at $1.30 for a small cup of coffee.

“We usually set our prices at the beginning of the semester, and they usually stay that way for the whole year,” said Carol J. Bird, an employee at the Dash Café.

But the Starbucks competition doesn’t think the company’s higher prices will necessarily be a boon to their business.

“I think people continue to be customers wherever they are used to going,” Kelley, the Toscanini’s manager, said.

Some Starbucks customers agree, saying that the price change will not prevent them from patronizing the coffee chain.

“The drinks were already overpriced anyway,” said Mark F. Costley, a customer at the John F. Kennedy Street location.

Sunny M. Lacefield, a patron of the Mass. Ave. store near Porter Square, said she will continue to come to Starbucks despite the increase in prices.

“Now the employees just won’t get a tip,” she said. “I used to give the change I had as a tip, but now it’s paying for the drink.”