Tuesday, July 7, 2015

Starbucks raises prices after hiking miminum wage

Coffee prices are going down and many coffee shops are cutting their prices.  However, Starbucks is instead raising its prices as it also gave a minimum wage increase earlier this year. The Wall Street Journal reported:


Starbucks is raising prices slightly on some of its beverages to cover rising costs including wages and rent, even as prices for raw coffee have been falling.

The Seattle company, like other coffee purveyors, often raises prices for its products when coffee prices increase, but the latest move comes despite a decline of about 42% in Arabica futures prices from a peak late last year. The increase, which takes effect Tuesday, will increase the cost of the average customer order by about 1%, Starbucks said. Bagged coffee won’t be affected.

The increase comes from an overall need to manage business costs, including labor and rent expenses, a Starbucks spokeswoman said.

“Our pricing philosophy is to balance our need to run our business effectively while providing maximum value to our customers,” she said.

Some other retailers have started raising prices in cities that have passed wage increases. Chipotle Mexican Grill Inc. has been raising prices in several cities across the country, with the highest increases in San Francisco, where the minimum hourly wage rose to $12.25 on May 1, up from $10.74. Chipotle’s menu prices in San Francisco rose, on average, more than 10% compared with about 4% in other cities, according to a recent note from William Blair & Co.

Cups & Stinky Beans, anyone? 

16 comments:

Anonymous said...

Gee. Raising prices to offset expenses. Who ever heard of such a thing?

noel said...

hahaha, math

Anonymous said...

ouch - math hurts my brain!

just tax the rich to pay for my latte

Anonymous said...

Good! Now maybe all of the libtards that go to Starbucks will understand why raising the minimum wage to $15 an hour isn't a good idea?

Anonymous said...

12:39. All the "libtards" I know go to sneaky beans, cups, or whole foods. And in Seattle- far better places than Starbucks anyway. Libtards there support local too- with the exception of whole foods, trader joes, and urban outfitters

Tell Da Troof, Danny Mollisack! said...

Econ 101. A totally foreign subject to people who think wage hikes occur in a vacuum.

I always smile when reality manifests itself squarely in the liberal fantasyland of highly paid unskilled workers funded by confiscatory taxes levied against "the rich" and "corporations".

How many patchouli oil types who screamed loudly and publicly to raise the MW are now grumbling that their venti soy latte costs a buck more? Pretty much all of them.

Anonymous said...

Raising the minimum wage is still a good idea. First quarter profits for Starbucks were up 80% and that brought profits per share up to 80 cents. They also increased the CEO's compensation package by nearly 30% in 2014.

Starbucks hasn't increased their minimum pay scale to $15, so we aren't talking about the proposed living wage increase. They have had a minimal increase in labor costs, and my guess is that Starbucks has analyzed its market data and found that their customer can absorb higher costs. This means they can continue their ever increasing profit per share target while also paying a higher wage.

The issue is that we aren't talking about a company in the red. Starbucks has a very healthy profit margin and despite paying millions to their executives, they claim they can't sacrifice a few cents per share to give their employees a fair wage. This is where the major disconnect should be for Americans. It's one thing to argue that the small business owner may go out of business because of increased labor costs (bad), but protecting a massive corporation's already healthy profit margin at the expense of fair pay and employee benefits?

We subsidize these Starbucks employees with our tax dollars because there are 191,000 Starbucks employees out there that will qualify for government benefits. If you want to be a true conservative, push for high minimum wages and slash government benefits.

Anonymous said...

If you can afford to buy coffee at Starbucks in the first place, you can afford to pay enough to furnish the people who are helping you with a decent wage.

Anonymous said...

I like the old fashioned black and strong coffee, don't care what they charge, never set foot in any of their joints.

Anonymous said...

Basic Retail 101

1 before 2 and 3 before 4 otherwise known as "good news first" and "bad news last" or no good deed goes unpunished.

Anonymous said...

I stopped at a Starbucks last week for the first time in years. The prices were already too high so I will not be going back. I have noticed, in my town anyway, many people who complain about never having any money, they don't pay their debts but somehow have money to buy coffee at Starbucks while talking on their iPhone 6.

Wacko Logic Spotted said...

So,4:04, just to be sure I understand your logic: Support an increase in the minimum wage so costs and prices will escalate and I will pay more so the government won't continue to give people an 'earned income tax credit'? Were you serious or just strung-out?

Anonymous said...

@Wacko Logic Spotted

If you're making $15k a year you qualify for a lot more than an EITC. You get the full ACA subsidy, food stamps, and all the other social safety nets.

Also, the point was that prices shouldn't increase due to marginal increases in labor costs. Corporate profits are a scam when labor costs have been stagnate for a decade.

Col. Reb Sez said...

Starbucks coffee tastes bad. They roast the beans to the second "pop," and as a result their coffee has a burnt taste. If it were free I wouldn't drink it, although it is okay when mixed with a bunch of milk and sugar to make a latte.

Anonymous said...

I believe that the minimum wage has outlived it's usefulness. Once upon a time it was difficult for workers to change jobs or even to find out how much they might make elsewhere. The internet has changed that. You can apply for jobs, email back and forth about wages, etc. and in many cases miss only an hour or so to interview for your new job. The fact the every employee (who does not have a contract) can quit or be fired tomorrow is the trump card that keeps everything fair. Don't like what you are paid? Go to work elsewhere. As a business owner you would soon learn that if good workers are not rewarded they will leave. Meanwhile as minimum wages have risen so has teenage unemployment, teenage crime, and unwed motherhood. For most people a minimum wage job is a first job, a stepping stone where they can learn how to work and improve their skills and resume. When employers are forced to pay too much for unskilled work the young people who need the job the most will not be hired. I am baffled at why we are even discussing minimum wage anymore.

Gimme Moe said...

9:37; You seem to be suggesting that Starbucks employees are making minimum wage at present. I doubt that. But, who cares? Let the free market take care of wages and whether or not the business thrives. If every soul currently getting an EITC check were to lose that benefit due to an increase in their income, the government would almost immediately dream up another entitlement for them and they'd never miss a beat.

A job at Starbucks, like a job at McDonald's or Church's Chicken should not be a goal or a means of supporting a herd up chillun.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.