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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