Brazilian officials predict that this year will be a bumper harvest of coffee beans.
Dunkin Donuts said that they provide price advice to franchisees, but the final pricing is determined by individual franchisees. According to the report, the retail price of Starbucks' superstore coffee may be reduced, but it is impossible for the store to follow suit. Starbucks will only continue to raise prices in the future, and no matter how the price is adjusted, consumers are willing to pay the bill.
In addition to the minimum wage pressure, rents are also rising in many markets, and Starbucks has to pay college tuition for 4000 employees, which will be passed on to consumers. Analysts say coffee beans account for about 20% of Starbucks' total cost. as for why retail prices have to be increased, Starbucks only said that their pricing came from a variety of factors, emphasizing that it was competitive.
But many people will question that when commodity prices rise, such as the rise in coffee bean prices in 2014, Starbucks, Dunkin Donuts and many other companies have said that in response to price increases. Now the price of coffee is falling, and Starbucks also raised its price in July last year. The reason is also to reflect the cost. What's going on?
Brazilian officials predict that this year will be a bumper harvest of coffee beans, resulting in a glut of coffee beans and a drop in prices, but don't expect lattes sold to consumers to lower prices. First of all, there is a rise in labor costs. CNN Money cited Starbucks in the United States as an example. Under the pressure of rising minimum wages in various states in the United States, Starbucks will use its profit space to raise wages, which will affect not only Starbucks, but all the retail food industry.
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Starbucks' overseas performance has slowed this quarter. Sales growth in Europe has increased from the previous quarter.
As usual, Starbucks launched red paper cups for the Christmas season. But this paper cup has nothing but a red background and a green Logo, which is much more monotonous than the red cup decorated with Christmas trees, snowflakes and reindeer in the past few years. Although the red cup, which is so simplistic in design, has become the object of ridicule around the world, Christmas still contributes a lot. Starbucks Group
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Starbucks teahouses can no longer be opened, and they may only sell tea in cafes.
Teavana is a brand founded by a couple in 1997. They hire professional purchasing teams to buy high-quality tea from tea gardens around the world, tea merchants (including, of course, Chinese) at high prices, then mix them into special teas and sell them online and in brick-and-mortar stores. Before the acquisition of Starbucks, Teavana mainly sold its own assembled bulk tea, including China's West Lake.
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