Why Is Starbucks So Expensive? (13 Reasons Why)

A coffee chain named Starbucks was created by two guys who started a business on the side of a coffee shop in Seattle, Washington. They named it Starbucks because they liked the way Starbucks sounds.

The high prices doesn’t stop millions of loyal customers from making their daily visits to Starbucks for their favorite drinks.

Why Is Starbucks So Expensive In 2022?

This is a good example of how the structure and composition of companies influences prices. The product is high in quality, the business is good, and the company spends money on many expenses. This translates into good profits for companies like Starbucks.

Finally, Starbucks is so expensive because it has read its market correctly. Regular customers are willing to pay higher prices for the reasons I mentioned above. So read on to discover more reasons why Starbucks’ prices are higher!

1. Brand Loyalty

Starbucks has the most number of customers, and that is why it is named as the most popular coffee shop of the world.

These regularly customers are very important clients and cannot be stopped from coming to Starbucks once a day.

Starbucks has a loyal customer base that will not be deterred by a high price. Starbucks prices are too high and Starbucks is increasing prices too often.

Starbucks coffee prices are very high and have been rising recently.

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Also, customers understand that they are spending time with the people that they’re doing business with.

This is ridiculous. I’m a grown ass man and I can’t go to a coffee shop!

My mom also tells a story about how she and an older woman were in a hotel coffee shop and the woman asked her how she liked her coffee.

2. People Are Willing To Pay More For The Convenience

  There’s also no doubt that there are a lot of great  coffee shops all over the world. But, there’s also no doubt about the fact that it’s much easier to get a great cup of  coffee at Starbucks than it is to get a great cup of  coffee at any of those other places.

With that, Starbucks customers are willing to pay more for the convenience of having someone at the store make their morning coffee for them and not having to wash the cups and coffee maker afterward.

The coffee shop chain is placed strategically inside metro stations, for commuting on the East-West line. The coffee shop chain’s stores are also located in the center of a business district, where people would get a caffeine fix, or a relaxing cup of coffee.

3. Taste

If you want to drink coffee that has the same taste as the cup you can get at your local coffee shop you’d better get a job at a big coffee shop.

Starbucks is the first company to make Espresso widely and readily available to American coffee drinkers.

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During the years Starbucks has grown and developed, customers have shown that they are willing to pay more to be part of a successful brand.

4. Coffee Is Addictive

Coffee isn’t addictive, and high coffee prices won’t stop regular coffee drinkers from getting their morning jolt of caffeine.

If the already high prices of Starbucks coffee drive away regular customers, then the price increases might make the coffee less appealing to the customers.

5. Wages And Benefits

Starbucks offers good pay and benefits, including paid vacations, health insurance, and tuition assistance.

It is interesting to note that while Starbucks’ operating costs are higher than other retail outlets, people continue to visit and enjoy Starbucks because it provides the desired benefits.

This means that their work culture is a part of their brand image.

This is a good time to pause and ask questions. Do I know enough about the company to understand how its employees feel? It’s also a good time to ask if there are any potential cultural differences when it comes to the relationship between an employee and the company.

6. Employee Career Development

Starbucks invests in their employees through training, and they start out at a low salary and learn the business as they get older. Starbucks also doesn’t have the problem with paying high wages that rivals do because they are so far behind on their supply chain.

If you care more about price than the morality of the people that produce your products, then you shouldn’t be drinking Starbucks.

7. Rents And Other Overheads

Starbucks is a very strategic company. They are based where people want to go shopping.

One of the more important factors is that real estate is expensive, and therefore, people are also willing to spend more when their favorite drink is served.

Utilities increase costs. Costs increase. You have more people without access to power.

8. Employee Training

Starbucks employees receive continuous training and sometimes have to start as baristas.

Starbucks employees have to master making all the Starbucks menu drinks, which requires skills similar to a bartender.

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Because they need to train their employees on how to make coffee and make drinks, the prices of drinks are heavily effected.

9. Ethically Sourced And Sustainable Products

Starbucks is a company that stands for ethics and sustainability. Starbucks has been able to achieve its green goals by using ethically sourced and sustainably produced materials all along its production chain.

Coffee is produced by workers that are treated fairly and have safe working conditions.

So, while it is true that there are costs due to using biofuels, it is also the case that the overall damage done to the environment is less than that done by fossil fuel burning.

While companies are generally known for unethical business practices, some people continue to show their preference for buying products from ethical or sustainable companies.

10. Sustainability

Starbucks has taken a very strong statement by reducing its carbon footprint by 50%.

Starbucks is trying to be sustainable and have made some changes such as bringing more sustainable coffee to more places.

For example, IKEA’s efforts to reduce the use of waste and use renewable resources and materials do find public support.

11. Innovation

Starbucks has led innovation behind the counter, in their stores, in their packaging, and in their distribution. Many of the innovations that I have made are innovations that we hope to bring to a store level.

It is not surprising that Starbucks wants to minimize the problem of plastic pollution. This is not the first time that Starbucks is using innovative technology to reduce its negative impact on the environment. Starbucks is also one of the first companies to use recycled plastic to produce reusable cups.

Starbucks finally announced on June 1, 2016 that they are introducing their new cup that is made of a compostable material.

Although Starbucks has a commitment to making its operations more sustainable, the higher prices are only to compensate the difference of the higher wages of the low-paid employees.

12. Support For Farming Communities

Starbucks is very conscious of the environment and its workers, as well as its suppliers and the communities where its products are grown.

One example of Starbucks’ Coffee and Farmer Equity practices is the company’s commitment to support farmers and agricultural communities by maintaining workers’ rights and sustainable farming practices.

Although companies invest in high technology, this has a huge impact on the overall economy.

However, as with sustainable practices, customers are more willing to pay higher prices for a cup of coffee that has been ethically crafted.

13. Reading The Market Right

That’s what Starbucks is doing. It has read the market right. Customers will support high prices for several reasons.

It is also important to know that although you would prefer to drink coffee with milk. It is not against the drink’s brand standards to drink coffee without milk.


Starbucks can keep its prices high because of the loyal base of customers that will keep them in business for generations.

Starbucks has been growing rapidly. Its growth has been especially strong in the United States, where the company has become one of the most popular tourist destinations.

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About the author

I have always been a shopaholic. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. - Caitlyn Johnson

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