U.S. News
Starbucks Faces Customer Backlash Over Skyrocketing Prices Amid California Wage Hikes
Clear Facts
- Starbucks ranks last in affordability among major coffee chains, with only 51% of customers considering it affordable.
- Despite strong customer loyalty, 47% of those buying less or not at all cite high prices as the primary reason.
- Starbucks has increased prices in California due to the state’s rising minimum wage, leading to customer dissatisfaction.
Starbucks, a name synonymous with coffee culture, is facing a brewing storm in the realm of customer affordability. According to a survey by Technomic, Starbucks ranks dead last in affordability among major coffee chains, with a mere 51% of customers considering it affordable. This is a stark contrast to Tim Hortons, which tops the list with 79% of its customers finding it budget-friendly.
The loyalty of Starbucks patrons is undeniable, with 21% returning within three days and 71% visiting at least once a week. This dedication has contributed to a customer retention rate of 44%, significantly higher than the industry average of 25%. Howard Schultz, the interim CEO, noted that “The rewards program … is generating significant revenue for Starbucks.”
However, despite this loyalty, a growing number of customers are turning away from the chain. The company’s share price plummeted to a one-year low in April 2024. Among the 45% of consumers buying less or no longer purchasing from Starbucks, the primary reason was price-related, with cost concerns “well above every other reason indicated.”
The cost of Starbucks beverages varies across the country, but in some places, it has reached eyebrow-raising levels. For instance, a “Hocus Pocus Frappuccino” was priced at $13.90 in Los Angeles in 2023, while a Churro Frappuccino cost $10.25. Such prices can quickly add up, especially for frequent visitors.
One of the reasons behind the price hikes in California is the rising minimum wage. A Starbucks spokesperson confirmed that prices in the state increased in response to this change, though they did not specify the average increase per menu item.
The price increases have not gone down well with all customers, leading to instances of verbal abuse towards baristas. One barista took to Reddit to express their frustration, saying, “As if we don’t get harassed enough.” Another commented, “The worst part is gonna be the old men who just get a black coffee asking me why it costs more. I feel like the people with fancy drinks know they’re spending a ton already and won’t care too much.”
As Starbucks navigates these challenges, it remains to be seen how the coffee giant will address the affordability concerns of its customers while maintaining its business model.
Let us know what you think, please share your thoughts in the comments below.
Weakglovehand
October 20, 2024 at 7:28 am
Even liberals are not exempt from paying “their fair share”, they just think they are until the bill comes due. College tuition forgiveness programs and election promises are no different. Somebody has to pay the bill, they just don’t think their equality ideas don’t come at a cost. If you can afford $13 for a specialty coffee, then welcome to the paying class! Don’t complain, because unlike the rest of us, you can opt out by not buying from Starbucks. The rest of us have our earnings hijacked to afford the programs the left seems to feel are essential
William A Steinberger
October 20, 2024 at 7:48 am
I have already boycotted Starbucks for threr liberal politics! Bankrupsy is your option!
Kamikazecowboy
October 20, 2024 at 7:41 pm
Maybe they will.fold.up and go away. Anyone dumb enough to buy that shit water needs.mental help.anyways
John Ahlstrand
October 20, 2024 at 8:23 am
Until people Joe Biden has killed a tremendous amount amount of business in the US by having gas prices go threw the roof. Shipping coffee has raised the cost of bean’s 35%.So of your going to vote for Harris just remember why your comfort food is so much more then 4 years ago and will only will go up until affordability.
Retired4ever
October 20, 2024 at 10:01 am
I stopped going to SB long before their price increasing. They stopped using the top line beans for the daily coffee & it really showed. They aren’t even in my top 5.
alan hasso
October 20, 2024 at 10:28 am
Unionization of Starbucks will destroy the chain.
Mike
October 20, 2024 at 11:00 am
I don’t think Starbucks charges enough. I think they should triple their prices. Pay their employees $200 per hour plus $20 for every cup of coffee. They serve these Peter puffirst. Tranny puffers need to pay their share.
MikefromTexas
October 20, 2024 at 11:34 am
Not sure why people even go there. I haven’t and never will. I can eat lunch what one of their fofo drinks. Army taught me ti drink my coffee black because 1/2 the time they didn’t bring sugar to the firld.
Babsan
October 20, 2024 at 12:21 pm
California’s wage hike will kill most food service companies.So people bark at Starbucks,well Newsom should be barked at too.
Claudia
October 20, 2024 at 3:00 pm
The people who complain about the prices being raised because baristas ask for a living wage can just stay home and make it themselves. Starbucks’ upper management are still raking in astronomical salaries – blame them. People who serve you (baristas, checkers in supermarkets and stores, bank tellers, childcare workers, etc.) deserve a living wage for services rendered. Don’t like it? Again, just do it yourself.