Price Jump Could Ice Coffee Sales

With another price hike and competitors on its heels, will Starbucks stumble?
By Dustin Lushing,  Newser Staff
Posted Aug 1, 2007 5:26 PM CDT
Price Jump Could Ice Coffee Sales
Martin Coles, president of Starbucks Coffee, since 2004. Although the coffee-franchise has an incomparable success, the future remains uncertain.   (Getty Images)

Starbucks recently hiked the cost of its coffee an average of 9¢ a cup—the seventh bump up since 1997. With a faltering stock price and learnings lagging after 15 years of solid growth, BusinessWeek wonders whether the premium coffee purveyor may have finally maxed out the market for the luxury latte.

Starbucks today announced a 9% rise in its 3Q earnings, to 21¢ a share. But  same-store sales, a key measure, rose a modest 4%. And competition is up—Dunkin' Donuts and McDonalds have both made aggressive moves to get into the game—and new customers Starbucks needs to grow are likely to be more budget conscious than loyalists. (Read more Starbucks stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.