Starbucks is raising prices by an average of about 1 percent in the U.S. Northeast and Sunbelt regions on Tuesday, a move affecting cities such as New York, Boston, Washington DC, Atlanta, Dallas and Albuquerque.
Starbucks expects high prices for things like coffee, milk and fuel to cut into profits this year and — along with restaurant operators ranging from Chipotle Mexican Grill to McDonald's Corp — is raising prices to help offset some of that cost pressure.
In New York City, prices for 12-ounce "tall" brewed coffees and latte drinks each will go up 10 cents. Prices on about a half a dozen other beverages also will increase, Starbucks spokesman Jim Olson told Reuters.
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