Starbucks decides to increase their prices due to rising cost of raw materials. A company spokesperson states Starbucks monitors the prices of various coffee beans closely, while still wanting its pricing adjustments bringing maximum value to consumers.

However, there are two sketchy things about this situation. First of all, Starbucks refuses to mention the exact price increase. Secondly, a competitor—Caffe Artigiano—manages without increasing its prices. The company’s vice-president says that Caffe Artigiano is dealing with long term pricing contracts, allowing the business to keep their prices low.

This is interesting: if a business with only 12 branches can find cheap sources, why can’t Starbucks do the same? Starbucks is the major player when it comes to selling coffee, so the company should plenty of power when it comes to buying supplies—coffee beans. Yet prices still increase.

Now, food prices do inflate, and profits do need to be made. Still, if Starbucks is more transparent about their pricing instead of just dancing around the situation, it’ll be easier for consumers to swallow. After all, I’m sure many sleep-deprived college students won’t exactly notice if they had to pay an extra 50 cents for coffee or hold a grudge.

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