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Why Is Starbucks So Expensive In 2022? (13 Reasons Why)
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Merritt Island, Florida
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| Five Guys Burgers and Fries | |
| Type |
Private |
| Industry | Food |
| Genre |
Fast casual restaurant |
| Founded |
|
| Founders |
Jerry Murrell, Janie Murrell [1] |
| Headquarters |
,
United States
|
|
Number of locations
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1,500 [2] (2016) |
|
Area served
|
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Key people
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Jerry Murrell, Jim Murrell, Matt Murrell, Chad Murrell, Ben Murrell, Tyler Murrell [10] |
| Products |
Hamburgers , french fries , hot dogs , soft drinks , milkshakes |
| Revenue |
US$ 831.95 million [11]  (2016) |
|
US$ 92.94 million [11]  (2016) |
|
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US$ 57.68 million [11] (2016) |
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Total assets |
US$ 393.29 million [11] (2016) |
|
Total equity |
US$ 244.48 million [11] (2016) |
| Owner | Murrell family |
|
Number of employees
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15,000 [12] (2016) |
| Website |
fiveguys.com |
Starbucks, which is the largest coffee retailer in the world, has a reputation for serving good coffee in upscale surroundings. Also, it is well-known for being very expensive.
Millions of Starbucks customers aren’t discouraged by the high price of coffee and other beverages, but they still make regular visits to Starbucks to get their favourite drink.
Why Is Starbucks So Expensive In 2022?
Starbucks prices are so high because of customer loyalty and the quality of its products. Additionally, rent and operating cost are factors that contribute to higher prices. Higher costs also come from investments in employees. These include good wages, high benefits, ethical and sustainable practices and business strategies.
Over the years, Starbucks has developed a loyal customer base that is numbered in the millions.
This is an example of how regular Starbucks customers make a Starbucks visit a part of their everyday routine. They can’t wait to change this.
Because of brand loyalty, Starbucks’ high prices and price increases will not deter regular customers from getting their favorite Starbucks drinks.
Starbucks has a strong brand image that includes high-end coffees and other beverages. This doesn’t mean the company is losing sales.
Customers also realize they are paying for more than just Starbucks coffee.
They’re fine with a cup of coffee that costs twice as much at the convenience shop.
There’s no doubt that it’s cheaper to make coffee at home. There’s no doubt about the fact that Starbucks is much more convenient than buying a coffee in Starbucks.
With that, Starbucks customers are willing to pay more for the convenience of having a trained barista make their morning coffee for them and not having to wash the cups and coffee maker afterward.
Starbucks outlets are conveniently located near busy office workers or commuters to provide a relaxed drink and a boost of caffeine.
Starbucks coffee might be more expensive than the average cup at the corner grocery, but it tastes better.
Starbucks for instance, made espresso available widely to American coffee drinkers.
Starbucks customers consistently pay more for great coffee every year.
It is easy to become addicted to coffee, even if the price tag doesn’t prohibit regular coffee-lovers from enjoying their morning cup of coffee.
Neither will regular Starbucks customers be displaced by an increase in coffee prices.
Starbucks provides excellent wages and benefits for its workers, such as paid leave and health insurance.
Starbucks enjoys many attractive benefits, and this results in high operating costs.
Starbucks’s ethical work culture, however, is part and parcel of the brand’s image.
This means that customers will pay more to purchase products made by companies who treat their employees well.
Starbucks invests in its employees through training at the start and throughout their careers. It is a major expense, but it drives up the price of employee training.
Although it means that Starbucks products are more expensive, customers can still accept these higher prices because they want to purchase from ethical companies.
Starbucks’s success is dependent on the location of its shops.
But, high-traffic and luxurious neighborhoods come at a steep price, which can impact drinks prices.
Other overheads like utilities keep increasing, so customers end up paying more for operating costs.
Starbucks offers continuous training for employees starting at the new hire baristas.
Starbucks requires new workers to learn how to make all of the beverages on their menu. This is similar to being a bartender.
Starbucks expects its workers to be knowledgeable about how to make coffee and company culture. This has a significant impact on the price of beverages.
Starbucks prides its self as an ethical corporation that only uses ethically sourced material throughout all its operations.
That means ethically sourced coffee comes from people who receive a fair wage, and are provided with safe work conditions.
Additionally, this reduces negative environmental effects of every step of the production process. This practice can increase costs of operation and raise prices.
However, customers have shown their preference for buying coffee and other products from a company that follows ethical and sustainable business practices.
Starbucks has taken a major public pledge to sustainablity by reducing its carbon footprint by half by 2030.
Previously, Starbucks has set itself sustainability goals and sometimes failed to meet them.
The company does find support from the public for their efforts to minimize waste and utilize renewable resources. However, this can mean that customers will have to pay more for certain products.
Starbucks has been a pioneer in innovation across many fronts. Products that appeal to its customers like new drink flavors are continuously being created and tested.
Also, Starbucks is an innovator in sustainability, leading the efforts to develop the “Green Cup” to minimize the problem of plastic pollution.
With that, Starbucks has recently introduced recyclable and compostable cups, which could prevent millions of cups from being thrown away in the trash.
Starbucks also publicly pledged to improve its sustainability. It is costly to invent on this scale, and it will result in higher prices.
Starbucks not only invests in its workers, but also helps the communities and farmers where its coffee, tea and cocoa are grown.
C.A.F.E. is a Starbucks coffee and farmer equity program. Practices support agricultural communities and farmers in maintaining worker rights and using sustainable farming methods.
Starbucks customers pay higher prices due to this investment.
As with all sustainability practices however, coffee drinkers are more willing to pay more for ethical cups of coffee.
Starbucks knows its market well and is confident that loyal customers will be willing to pay higher prices.
We have posts about Starbucks including whether it has oatmeal milk, caffeine in Starbucks refreshers, and how Starbucks fails to succeed in Australia.
Starbucks keeps its product prices high thanks to loyal customers who will support it.
Starbucks is known for its great taste and convenience.
.Why Is Starbucks So Expensive In 2022? (13 Reasons Why)