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It’s not your imagination. Your Starbucks drink really does cost more than it used to.
Starbucks prices increased in October and then again this past January and with labor, transportation and supply costs growing, more price increases are planned for this year.
Starbucks said it is also cutting back on marketing and promotions to help offset its rising costs.
Last month, Starbucks announced some locations were temporarily scaling back operations due to staffing issues amid omicron.
Starbucks has hired more workers than anticipated during the quarter, which led to higher training costs. Attracting and retaining workers continues to be a challenge for Starbucks as well as other retailers.
“The highly transmissible Omicron variant amplified staffing shortages in our supply chain, resulting in higher-than-planned distribution and transportation costs,” said a Starbucks rep.
Carolyn McArdle talked about it on the air. Listen below...