Personally, I doubt that it will hurt their business one bit. It's not like the majority of their customers are on a tight budget.

I was watching the Today Show this morning and they compared a gallon of cafe lattes to the cost of a gallon on gas ($3.00) and a gallon of bottled water ($7 - plus change). The gallon of cafe lattes was over $33!

Yeah, and I told the barista that story this morning as I got my daily Starcrack fix.

Interesting, Spike! As you know, I order my latte in an IV drip bag -- wonder if that goes up a nickel, too?

Maybe some customers will start ordering what some Starbucks baristas call "ghetto lattes" as a result of the price increase...? (These are Americanos, add your own dairy from the coffee condiment bar...)

Hi Lewis--

Say, I'm enjoying all your posts--keep it up.

I have no problem paying 1.94 for my morning bath of Joe, which i insist on calling a Jumbo, to the consternation of baristas everywhere. But it really is a consistent product delivered promptly everywhere I go, so you can call me a satisfied customer. Also, as a freelancer I have often used the local SBUX as an outside office, which adds even more value.

"And even happy and loyal customers can be fickle."

Fickle. That's the key word here. Starbucks has built an empire on the fickle customer who wanted something more than just a basic cup of Joe—and were willing to pay for it.

But as you say Lewis—it's possible that the brand may be showing it's "first cracks".

Remeber when Apple stopped innovating in the '90s, prior to the return of Steve Jobs?

That's when I bought a PC. And I had grown up with Apple. But the brand had lost their spirit and the product reflected this. And look at what happened when Apple got it's groove back.

So while it's too early to say that Starbucks may follow the same kind of path—all I can say is that we are a fickle bunch. Spoiled consumers you could say. So it's in Starbuck's best interest to keep the level of Experience very high.

Free Wi-Fi and good coffee shops are popping up all over the place...

Tom, thank you for your kindness.

Ann and Spike, keep the lattes flowing.

David, my service seems as consistent and the coffee as good as ever. I have been drinking Starbucks since 1988, and it is difficult for me to see any decline in the experience. But who can predict?

hi, lewis. you lucky guys that have starbucks. here in italy no sign of it and no plan from the company to get into the market. i'm a huge starbuck fan, whenever i'm abroad, but i do believe that even if service is great and products too, probably they need a new wave to ride.

Gianandrea,

You love Starbucks and I love Italy. My mother's family emigrated to the U.S. at the turn of the 20th Century from Syracusa.

As for Starbucks going to Italy, when I worked there the plan was to enter your country after success had been found throughout western Europe. Starbucks is rightly somewhat intimidated by Italy, as you serve the best espresso in the world. Italy is a tough brand to crack.

I'd rather go to Panera Bread: free wi-fi; better coffee; no tip jar on the counter. I'm sorry, but it needs to be said: when exactly when did this whole "I deserve a dollar for pouring your $1.60 cup of coffee" start? Tipping bartenders for mixing drinks is one thing, but c'mon. (I waited tables for a long time, so I can write this with confidence.)

I'm not a huge coffee drinker, but I don't think the increase should shake too many people, as long as more value, about 5 cents more value, is delivered from the brand. It's not like the roller coaster ride of prices at the fuel pump! And the article doesn't allude to a mere increase in margins, but more of a need to increase price to meet demanding business costs.

Personally, though, I think Starbucks may be reaching it's peak. I think a good analogy would be Wal-Mart and Target. They both deliver on the same concept - deeply-discounted consumer goods. Yes, Target is more "upscale," which is how they differentiate, but they're doing the same thing. Where they really win is attracting a *smaller* number of customers and delivering quality service and in-store experience. Wal-Mart became so popular that everyone was flocking, creating huge lines and headaches for managers. Now, it's easier to zip over to Target, find a sweet designer good for a low price and get out quick (how often do you see lines at Target? My hardest decision at the checkout area is which person I'd rather converse with while they're ringing my items up!). Starbucks may become so popular that lines will form and the experience will become average. Along comes another coffee shop to attract those who say, "I've had enough with the high prices, crowded stores and long waits."

Mere speculation, but c'mon, if you can't speculate, what kind of fun are you truly gonna have?

Right on Jennifer! I agree, Panera has more to offer in my opinion. I had a great experience on one of my recent visits - good enough for me to post about it...while sipping my coffee! Check it out here:
http://www.danielmonday.com/2006/08/panera-knows-customer-service.html

On personal opinion, I find this very helpful.
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