Starbucks (SBUX) customers in New York this week could no longer pay for their venti mochas with a five-dollar bill after a 20-cent price hike brought the cost with tax to $5.06. In Seattle, the company's home, a grande mocha is now $3.91, up 10%. In Washington, D.C., an upgrade to new loose-leaf tea bags also meant an upgrade in prices: A 50-cent hike to more than $2.00 for a mug. What's more, the company ended its 10% discount for "Black Gold Card" rewards members on the day after Christmas, leading many loyal customers to complain that demand for Starbucks coffee "is not inelastic."
Starbucks Customers Feel Burned by Surprise Price Hikes
Posted 6:40PM 01/14/10 Posted under: Company News, Starbucks
Starbucks (SBUX) customers in New York this week could no longer pay for their venti mochas with a five-dollar bill after a 20-cent price hike brought the cost with tax to $5.06. In Seattle, the company's home, a grande mocha is now $3.91, up 10%. In Washington, D.C., an upgrade to new loose-leaf tea bags also meant an upgrade in prices: A 50-cent hike to more than $2.00 for a mug. What's more, the company ended its 10% discount for "Black Gold Card" rewards members on the day after Christmas, leading many loyal customers to complain that demand for Starbucks coffee "is not inelastic."
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