Price Increase of 200 KRW for 11 Non-Coffee Items Starting November
Grande and Venti Prices Already Raised in August
"Staggered Price Increase to Minimize Consumer Burden"
Starbucks will raise the price of 11 types of Tall size iced beverages by 200 KRW starting next month. This comes three months after raising the prices of all beverages except the Tall size in August. As a result, the prices of popular menu items such as Double Espresso Chip, Java Chip, and Jeju Matcha Cream Frappuccino will increase from 6,300 KRW to 6,500 KRW.
11 Types of Iced Beverages: Only Tall Size Prices Increase by 200 KRW Starting November
Starbucks announced on the 28th that starting from the 1st of next month, the prices of some iced beverages excluding coffee will be raised by 200 KRW. A total of 11 menu items are affected. These include 6 types of Frappuccino, 2 types of Blended, 2 types of Refreshers, and 1 type of Fizzio.
The price increase applies only to the standard Tall size, which has a volume of 355 ml. Accordingly, popular menu items such as Double Espresso Chip, Java Chip, and Jeju Matcha Cream Frappuccino will increase from 6,300 KRW to 6,500 KRW. The Strawberry Delight Yogurt Blended will also rise from 6,300 KRW to 6,500 KRW. The Strawberry Acai Lemonade Starbucks Refresher will increase from 5,900 KRW to 6,100 KRW.
Grande Prices Already Raised in August... Why Different Timing for Size-Based Price Increases?
Starbucks decided to raise prices only for Tall size beverages because the prices for Grande (473 ml) and Venti (591 ml) sizes were already increased in August. At that time, Starbucks raised the prices of all beverages’ Grande and Venti sizes by 300 KRW and 600 KRW respectively, while keeping the Tall size prices unchanged.
Starbucks cited "reducing consumer burden" as the reason for staggering the timing of price increases by size. A Starbucks representative said, "We chose to raise prices for the Tall size, which has a high order ratio, during the winter season when demand for iced beverages decreases, to minimize customer burden." The Tall size is the most sold size at Starbucks. Although it fluctuates by season, generally the Tall size accounts for more than half of sales. Roughly, Short and Tall sizes make up 55-60%, while Grande and Venti sizes account for 40-45%.
Although prices for some iced beverages will increase, Starbucks mobile gift cards purchased before November can still be used without additional charges after the price increase.
Meanwhile, Starbucks’ decisions to raise prices consecutively in August and November are aimed at improving operating profit margins. Starbucks Korea recorded a record-high sales revenue of 2.9295 trillion KRW last year. However, the operating profit margin was 4.8%, about half compared to 8.5% in 2020 and 10.0% in 2021 during the COVID-19 pandemic. Although sales increased with more store openings, costs such as labor and raw materials rose sharply.
A Starbucks representative said, "We have internally absorbed external price increase factors such as rising international coffee bean prices, high exchange rates, and labor costs, but as the burden has continued to accumulate, we ask for your understanding regarding the price increase of some products."
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