US coffee giant latest to impose price hikes, adding to growing burden on coffee-loving Koreans
Koreans will soon pay more for Starbucks, as the chain announced a price hike Monday for 22 beverages, effective Jan. 24. The price of its signature tall Americano, the most popular item on the menu, will increase by 200 won to 4,700 won ($3.25).
This marks Starbucks Korea’s third price increase in just five months, reflecting rising coffee beans and operations costs. However, for its two best-selling drinks -- Americano and cafe latte -- this is the first price change in three years.
Prices for other favorites like a cafe latte, cappuccino, caramel macchiato and grapefruit honey black tea will also go up by 200 won for both tall and short sizes. Additionally, drinks like cold brew, milk tea and yuzu mint tea will see a 200-won increase for larger sizes.
Meanwhile, “Today’s Coffee,” which features daily rotating coffee bean selections, will increase by 300 won for tall and short sizes, with grande and venti sizes rising by 100 won.
Not all changes are increases. Ten drinks, including the Jeju matcha latte, will remain unchanged, and one will become cheaper.
Starbucks Korea explained that the decision was unavoidable due to the rising costs of coffee beans, exchange rate fluctuations and other operational expenses. “We’ve tried to minimize the impact on customers, but cost pressures have left us with no choice,” a Starbucks Korea official said.
Starbucks is not the only coffee chain raising prices. Paul Bassett, a premium coffee brand, will increase the prices of 28 products starting Jan. 23, with hikes ranging from 200 to 400 won. A Cafe Latte at Paul Bassett will rise to 5,900 won, while its ice cream will go up to 4,300 won. This marks the brand’s first price increase in nearly three years.
Other coffee players have made similar adjustments recently. In November last year, Dong Suh Foods raised factory prices on its instant coffee and coffee mixes by an average of 8.9 percent. Coffee Bean Korea and budget-friendly chain The Venti also raised prices in 2024.
mjh@heraldcorp.com
