News

Starbucks raises prices

November 17, 2011

Starbucks Corp. has raised prices in some regions and lowered ones in others, according to a story in the Seattle Times.

Starbucks locations in the Pacific Northwest, Southern California, Hawaii and parts of the Midwest are seeing increases of 10 percent to 20 percent. Company spokesman Alan Hilowitz said the move was due to a "regular review" of prices. He also cited business conditions, commodities and occupancy costs, geography and competitive reasons.

Despite the price increases, Starbucks customers can find something to cheer about: the company's new holiday-themed mobile app. The company also recently launched Starbucks Cup Magic, a free augmented reality app that allows users to discover Starbucks holiday characters found on red cups, coffee bags and signage. Once downloaded, customers can watch the characters enjoy holiday activities such as caroling and sledding.

The app, currently available for Apple iPhones in the United States and Canada, iPod touch devices in the U.S. and soon for Android users, lets customers take snapshots of the holiday scene to send to friends via e-mail or Facebook and send Starbucks Card eGifts.

"As part of Starbucks efforts to find innovative ways to engage customers and bring the Starbucks Experience to life, we are excited to introduce this fun new Starbucks Cup Magic app for customers to use to interact with holiday characters," said Annie Young-Scrivner, global chief marketing officer, Starbucks Coffee Co. "We are also happy to provide a warm and comfortable gathering place for our customers to connect over their favorite holiday beverage or serve as a one-stop-shop for a special gift for anyone on your list."

Read more about specialty coffee/beverage trends.