Starbucks raises drink prices

Coffee, espresso, tea lattes affected
Posted at 9:49 AM, Jul 12, 2016

SEATTLE (AP) — Starbucks has increased prices slightly on brewed coffee, espresso and tea latte beverages at company-run stores in the U.S.

The announcement comes a day after Starbucks announced it would boost the base pay of all employees and store managers at the same stores by 5 percent or more.

The Seattle-based coffee chain says prices on select sizes of brewed coffee in U.S. company-operated stores are jumping 10 to 20 cents Tuesday, while prices on espresso and tea latte beverages will rise 10 to 30 cents. The amount depends on the market in which individual stores are based.

A Starbucks spokeswoman tells The Associated Press that the price increase is "incrementally" related to the wage hike and is a result of "balancing the cost of doing business in these markets."