Starbucks increased their prices on cups of coffee between 10 and 20 cents this week, with the hike coming in response to an increase in operating expenses and cost of sales, the Wall Street Journal reports.
A 12-ounce tall brewed coffee will now range from $1.95 to $2.15, with brewed coffee the only menu item that is currently seeing a price increase. The hike is being implemented at 8,000 stores nationwide and is due to a 9 percent increase in operating expenses and a 13 percent cost of sales compared to last year.
“Starbucks continually evaluates pricing on a product-by-product and market-by-market basis,” the company said in a statement to Fortune. “Evaluating prices periodically allows us to balance the need to run our business profitably while continuing to provide value to our loyal customers and to attract new customers."
"Beverage and food prices vary by location and customers can find pricing posted in store or through our mobile app. In the past year, Starbucks increased prices 1 – 2 percent which is on par with the industry practices and is in line with food away from home inflation.”
The increase in price comes after the chain added several new items to its menu, including the Triple Mocha Frappuccino, Ultra Caramel Frappuccino the Serious Strawberry Frappuccino.
Earlier this year, Starbucks also announced that it would be cutting back on limited-edition beverages.
On Monday, CEO Howard Schultz announced that he would be stepping down from the company.
“For some time now, I have been deeply concerned about our country — the growing division at home and our standing in the world," Schultz told the New York Times.
“One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back,” he added. “I’m not exactly sure what that means yet.”
Schultz has been rumored to be considering a presidential run and was asked about the potential possibility in the interview.
“I intend to think about a range of options, and that could include public service," he responded. "But I’m a long way from making any decisions about the future.”