Wednesday, September 27, 2006


Blame Chavez

Decadence just got more expensive.

Starbucks is increasing the price on a cup of coffee. The reason given - to offset the cost of rising fuel. However, the company later stated it was part of the ongoing business evaluation. Likely, taking a page from author of the Undercover Economist - Tim Haford - who indicates that Starbucks simply repackages products as high-end (read Hot Chocolate combined with Coffee) and people flock for the perception of quality.

Starbucks announced last week it plans to raise prices of its lattes, cappuccinos, drip coffee and other drinks by five cents, or an average of 1.9 per cent. The increase, which goes into effect Oct. 3 at all company-operated stores in the U.S. and Canada, will mark the first time the company has boosted drink prices in two years. Starbucks also is increasing the price of its coffee beans by about 50 cents a pound, or an average of 3.9 per cent.

I noticed that Tim's is boosting their prices Oct 2, good-bye $1.48 large coffee. I was on 61 of 74 towards my free cup of coffee thanks to the $0.02 I was saving from the GST cut.

And yes it is all Chavez's fault.
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