According to NBC4i, Starbucks on Tuesday announced that it will be increasing the prices of its products in 2022, citing rising inflation, supply chain disruptions and increasing labor costs, according to a statement by the company.
The coffee giant missed its projected quarterly profit as the highly-contagious omicron variant of COVID-19 swept across the globe, causing increased labor shortages and further coronavirus-related restrictions, particularly in China, which is Starbucks’ fastest-rising market, which was discussed in the company’s conference call.
The move marks the second time in just four months that the company has hiked prices, having also increased menu item costs in October 2021, reports The New York Times — and more price rises are on the way this year, according to Starbucks executives.
“Although demand was strong, this pandemic has not been linear and the macro-environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron, and a tight labor market,” said Kevin Johnson, Starbucks president and CEO.
Get Breaking News & Exclusive Contest in Your Inbox:
The Latest:
- Honda of Cleveland Heights Has Your New Car!
- Scene Magazine’s Best of Cleveland 2024: Vote For Z1079
- My First Time: Usher (And That Hat!) Tells Us About His Debut On The Skating Rink
- Multiple States Working To Ban Popular Snacks Linked To Cancer
- 10 Modern-Day Examples Of Environmental Racism
- 50 Cent Launches G-Unit Studios In Shreveport, Louisiana
- The Nike SB x Air Jordan 4 To Release A New Colorway In 2025
- Marvin Sapp To Record 16th Album Live In Chicago
- Snoop Dogg Hilariously Reacts To His AI Appearance on Drake’s Kendrick Lamar Diss Track, “Taylor Made Freestyle”
- Frank Ski Drops Earth Day Song “Amazon Sunrise (Lovely Day),” Announces Winners Of Planet Green Science Contest
- Kyle’s Message of the Day: Never Take Your People For Granted
Starbucks raising prices to offset soaring costs was originally published on mycolumbusmagic.com