NEW YORK (AP)
Starbucks says it is hiking prices in the U.S. starting next week.
The Seattle-based coffee company says it’s raising prices on average by 1 percent nationally starting Tuesday. But it says the price for many drinks, such as medium and large brewed coffees and Frappuccinos, won’t change in most its 11,000 U.S. cafes.
Depending on the market, Starbucks Corp. notes it’s the first price hike most customers will see in about two years.
The price hike comes despite falling coffee costs that have boosted the company’s profits. In the last quarter, Starbucks cited lower coffee costs for a stronger operating margin, which represents the money it pockets from sales after subtracting what it pays to keep stores running.
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