Little Caesars recently raised the price of its signature Hot-N-Ready pizza, while Chipotle Last year, restaurant prices rose 6%, the Bureau of Labor Statistics said in January.Ĭustomers have been tolerant of higher costs at other restaurants as well. Starbucks is nowhere near alone in raising prices. Still, raising prices hasn’t alleviated all of the pressure for Starbucks: Even with the hikes, the company reported earnings per share of $0.69 in the quarter, lower than Wall Street’s expectations.įood prices are rising elsewhere, but customers seem similarly unfazed Starbucks is no exception: The company said in October it would raise wages to at least $15 an hour for baristas, with most hourly employees earning an average of nearly $17 by the summer. Several major employers are increasing wages in a bid to entice applicants as businesses, particularly restaurants, have been struggling to hire from a shallow labor pool. Like many other companies, in addition to inflation, Starbucks is also facing higher labor costs. That was the biggest spike since June 1982, and it was higher than economists predicted. The US consumer price index, a key inflation gauge, rose 7% last year, before seasonal adjustments, the Bureau of Labor Statistics reported. It’s yet another example of US prices rising across the board, hitting consumers’ wallets and affecting companies’ bottom lines.
“To the contrary, our customer demand continues to grow.” “We have not seen any meaningful impact to customer demand,” said John Culver, Starbucks chief operating officer. (SBUX) stores open at least 13 months jumped 13% globally and 18% in North America, driven partially by higher prices, the company said Tuesday. In the three months ended on January 2, sales at Starbucks Starbucks says it will raise prices this year.
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