Why Is Starbucks So Expensive

Why Is Starbucks So Expensive In 2022? (13 Reasons Why)

Five Guys Enterprises, LLC
Five Guys Burgers and Fries
Industry Food
Fast casual restaurant
Founders Jerry Murrell, Janie Murrell




United States
Number of locations


Area served
  • Australia


  • Austria


  • Belgium
  • Canada
  • China
  • France
  • Germany
  • Hong Kong
  • Republic of Ireland
  • Kuwait
  • Netherlands


  • New Zealand


  • Italy


  • Luxembourg
  • Malaysia


  • Qatar
  • Saudi Arabia
  • Singapore


  • Spain
  • United Arab Emirates
  • United Kingdom
  • United States
Key people
Jerry Murrell, Jim Murrell, Matt Murrell, Chad Murrell, Ben Murrell, Tyler Murrell




french fries


hot dogs


soft drinks


Revenue US$ 831.95 million


US$ 92.94 million


US$ 57.68 million



Total assets

US$ 393.29 million



Total equity

US$ 244.48 million


Owner Murrell family
Number of employees



Starbucks, which is the largest coffee retailer in the world, has a reputation for serving good coffee in upscale surroundings. Starbucks is known for being costly.

The high prices for coffee, other drinks, and snacks don’t prevent millions of loyal customers from making their daily visits to Starbucks for their favorite drink.

Why Is Starbucks So Expensive In 2022? (13 Reasons Why)

Starbucks Prices in 2022: What’s the Deal?

Starbucks’ high price tag is due to the fact that it can charge customers high prices because they are loyal, convenient, and of course, quality. The higher prices are due to expenses such as rent and operational costs. Higher costs also come from investments in employees. These include good wages, high benefits, ethical and sustainable practices and business strategies.

  • Starbucks has correctly analyzed its market and is therefore so costly. For all these reasons, regular customers will be willing to pay a higher price. You can read more to find out why Starbucks has higher prices!
  • 1. Brand Loyalty
  • Starbucks has built a loyal customer base over the years that numbers in the thousands.

    For example, these regular customers have made a trip to Starbucks part of their daily routine and can’t imagine changing it.

    Starbucks will continue to serve its customers with their favourite Starbucks beverages, despite the high price and increase in prices.

    Starbucks is able to sell more coffee because of its higher price points.

    Customer also understand that Starbucks is more than just coffee.

    The convenience store will charge twice the price of a cup coffee, but they are fine with it.

  • 2. It’s not uncommon for people to be willing to spend more on convenience
  • Coffee at home is cheaper than buying it. But, there’s also no doubt that it takes much less effort to pick up a cup of excellent coffee at Starbucks on the way to work or school.

    Starbucks customers may be willing to pay more to get their coffee prepared by trained baristas and to not have to wash cups or make coffee afterwards.

    Starbucks shops are also strategically located to make it easy for commuters and office workers to grab a coffee or relax with a soothing drink.

  • 3. Try it!
  • Starbucks coffee costs more than coffee you could get from the corner shop but Starbucks coffee tastes great.

    Starbucks for instance, made espresso available widely to American coffee drinkers.

    Over the years, Starbucks customers have shown that they are consistently willing to pay more for a good cup of coffee.

  • 4. The Addictiveness of Coffee
  • Regular coffee drinking is addictive. High prices won’t stop regular coffee drinkers getting their daily dose of caffeine.

    Either way, regular Starbucks customers will continue to be loyal despite the increase in Starbucks coffee’s already-expensive prices.

  • 5. Wages And Benefits
  • Starbucks is a great employer and provides excellent benefits such as health insurance and paid leave.

    Starbucks is known for its desirable attributes, which means that their operating costs are often high. Prices reflect this.

    Starbucks’ ethical culture of work is part its brand identity and appeal.

    This means that customers will pay more to purchase products made by companies who treat their employees well.

  • 6. Employee Career Development
  • Starbucks invests in their employees with training from the very beginning to continue on throughout their careers. It is a major expense, but it drives up the price of employee training.

    Even though it results in higher prices of Starbucks products, this is acceptable for customers who prefer to buy ethically-owned companies.

  • 7. Overheads and rents
  • The strategic location of its stores plays a big part in the Starbucks success story.

    But, high-traffic and luxurious neighborhoods come at a steep price, which can impact drinks prices.

    Customers eventually pay the higher operating expenses because of other overheads such as utilities.

  • 8. The Training of Employees
  • Starbucks offers continuous training for employees starting at the new hire baristas.

    Starbucks’ new hires must be able to prepare all their drinks. It is similar to bartending skills.

    Starbucks demands that its employees learn how to make beverages, coffee preparation, and corporate culture. The cost of this training has an impact on drink prices.

  • 9. Product Sourced From Ethical Suppliers and Sustainable
  • Starbucks has a reputation for being an ethical and ethical company. It uses only ethically sourced and sustainably-produced materials in all aspects of its production process and operations.

    This means that ethically sourced coffee has been produced by people paid an honest wage and workers in safe working conditions.

    The negative effects on the environment of each step in the production chain are also reduced. These methods can lead to higher operating costs as well as increased prices.

    However, customers have shown their preference for buying coffee and other products from a company that follows ethical and sustainable business practices.

  • 10. Sustainability
  • Starbucks has made a significant public commitment to sustainability by cutting its carbon footprint by 50% by 2030.

    Starbucks has previously had sustainability goals that were sometimes not met.

    However, the company’s efforts to reduce waste and use renewable resources and materials do find public support, even if it means paying more for products.

  • 11. Innovation
  • Starbucks is a leader in innovation on many levels. New products, such as drinks with new flavors and appealing to customers, are continually being developed and tested.

    Starbucks is also a pioneer in sustainability. They are leading efforts to make the Green Cup to help minimize plastic pollution.

    Starbucks recently launched recyclable and compostable cups. This could reduce the number of disposable cups that are thrown out.

    Starbucks also publicly pledged to improve its sustainability. So, innovation on this scale takes substantial investment, which leads to higher prices.

  • 12. Support For Farming Communities
  • Not only does Starbucks invest in its employees, but it also supports the farmers and communities where the coffee, tea, and cocoa used in its products are grown.

    C.A.F.E. is a Starbucks coffee and farmer equity program. These practices assist farmers and rural communities with sustainable farming practices and worker rights.

    Starbucks customers will pay more for this investment.

    Customers will pay more to get a cup of ethically brewed coffee.

  • 13. Right Market Reading
  • Each of these reasons shows that Starbucks has read its market right and that its loyal customers will support high prices for several reasons.

    You can read more on Starbucks by visiting our blogs about whether Starbucks uses oat milk and if Starbucks refreshers contain caffeine. Also, we have a post explaining why Starbucks was unsuccessful in Australia.

  • Conclusion
  • Starbucks has a strong customer base which will continue to support it and can maintain high prices for its products.

    Starbucks is known for its great taste and convenience.

    .Why Is Starbucks So Expensive In 2022? (13 Reasons Why)

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