Ever since it first entered Philippine shores way back in 1997, more and more Filipinos with the passing of years have been blessed with the honor and pleasure of tasting the smooth and creamy goodness of coffee from Starbucks. The global coffee company and coffeehouse chain has helped make household names of coffee blends such as espresso, lattes and even teas, and their various locations have become cozy social hubs since the advent of wireless internet. The story of Starbucks in the Philippines is no exception. That experience however is bound to get a little bit steeper on the pockets.
As ABS-CBN News has it, Starbucks Philippines will be upping the prices of its coffee and other beverage on their menu to around 3 to 8 percent. Monetary wise, that amounts to a price increase ranging from P5 to P10, on top of the average Starbucks price range from P110 to P200. Starbucks Philippines, or rather the chain’s local franchise operator Rustan’s Coffee Corp., did not offer much of an explanation for their going with a price increase on their products, though it could be an expected response to the current general trend of increasing prices everywhere in the country.
“As part of our comprehensive approach to providing value and the Starbucks Experience, we periodically evaluate pricing to balance our need to run the business profitably while providing maximum value to our loyal customers and to attract new customers,” read a statement from Starbucks Philippines. This would be the first time since 2016 that they have upped the prices of their beverages for customers. The hike however, has had no effect so far on Starbucks pastries and other food products. Starbucks regulars first encountered the new price rates on Monday, the first day of October.
The rising prices at Starbucks and everywhere else lately were all the result of a massive surge in inflation. September saw that rate a 6.4 percent, the highest it has ever been in almost ten years of measurement. While the next inflation data is due to be reported this Friday, October 5, economic analysts fear that the results will only indicate the inflation rate is increasing even faster than it already is. Starbucks also needs to consider its own profitability when it decided to raise its beverage prices when they did, but that hike on top of higher prices for basic goods like rice, fish and meat might only make things more difficult for buyers.
Image courtesy of Interaksyon