Yup, it’s a story you’ve heard before, and a story you’ll probably be hearing for a long time now: Prices for some of your favorite foods and beverages are continuing to rise, and that includes Starbucks. The Wall Street Journal reports that the ultra-popular coffee chain is making a push to sell you higher-end beverages (like iced/blended coffee drinks) to make up for supply and labor costs. And don’t be surprised if you see the prices of other items on the menu go up along the way.
It’s not like Starbucks is suffering—it has projected higher profits on the way despite the hurdles. Quarterly sales are now past pre-pandemic numbers, and after its third quarter ended in June, the chain reported $7.5 billion in sales, above what was expected by analysts. The reopening of lobbies and the ability to funnel people toward online ordering were key factors in its success.
Still, supply chain problems did dip into Starbucks’ profit for the third quarter, and operating costs will rise with inflation. If you’ve noticed that the brand is really pushing cold and custom-made drinks, it’s because those are the more expensive items on the Starbucks menu.
The inflation issue is also affecting what you pay at the grocery store, though some stores have been stockpiling items at the cheaper prices in order to give shoppers a softer landing. Other food-related industries are also experiencing those rising costs, and that includes restaurants. Seems like we’re all going to have to learn how to cook our favorite takeout meals at home if we want to stick to a budget. And we may have to up our at-home coffee game, too, or part ways with more of our hard-earned cash.