Starbucks under fire for price hike

Starbucks Coffee Korea has come under criticism from consumers for raising prices by 300 won on Jan. 1.

Consumers began paying 300 won more for a cup of latte, Americano, tea and hot chocolate. A tall size 355-milliliter cup of Cafe Americano now costs 3,600 won, while the Cafe Latte costs 4,100 won. The short size 237-milliliter cup of drip coffee is now 2,800 won and the tall 3,300 won.

The prices of most of its Frappuccino drinks, however, will remain the same, except for the mango and black currant Frappuccinos which will drop to 4,500 won from the previous 4,800 won for a tall-size serving.



While Starbucks Coffee Korea argues that its latest business decision has been reasonable and reflects the company`s respect for consumers, some consumers have gone so far as to criticize the move as a "sudden attack."

Some local online community sites have expressed resentment and disappointment towards the espresso retailer`s failure to provide sufficient notice to the public, raising questions over the coffee icon`s claims that it values fair and ethical business practices.



"We have sought to raise the prices at the utmost minimum to reflect more than the 20 percent rise in costs throughout the past five years of coffee beans and other raw materials, as well as the rise in local costs for rent and milk," Park Chan-hee, the Starbucks Coffee Korea spokeswoman, told The Korea Herald.

The company also insists that its menu items in general cost at least 10 percent less than its competitors, such as Coffee Bean and Pascucci.

Park sought to express her regret to the public for creating any misunderstandings and disappointment.

"We are sorry about disappointing consumers and we believe such public reaction signals a need for us to reflect and make sure we better communicate with our customers," she said.

Park also interpreted the criticism as the public`s greater interest and high expectations from a globally leading coffee retailer.

(sohjung@heraldm.com)







By Yoo Soh-jung