|Girish Shetti |||Jun 19, 2016 08:02 AM EDT|
(Photo : Getty Images.) Popular coffee chain restaurant Starbucks is all set to moderately increase prices of some of its drinks.
Popular coffee chain restaurant Starbucks is all set to increase prices of some of its drinks by one or two yuan ($0.15 or $0.30) in Mainland China.
The price rise - which will go into effect on June 16 - will cover only selected beverages. The prices of food, whole bean coffee, merchandise, and Starbucks reward cards will remain unaffected.
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"We have always taken a long-term approach to pricing by carefully monitoring and evaluating our local market operating costs, including occupancy expenses, distribution, infrastructure, labor, innovations and other operating costs," a statement by Starbucks said.
Starbucks has resorted to a price increase for the first time since 2012. Analysts say that price hike was in the cards, after the cost of the drinks remained unchanged for such a long time.
Ben Cavender of China Market Research Group, said that despite low inflation, there has been study rise in the cost of rent and food ingredients.
Starbucks entered the lucrative Chinese market in 1999 and since then has added 2,200 stores across 102 Chinese cities. It is currently the most dominant player in China's coffee chain market.
Starbucks' success in maintaining quality across all its products has been cited as the main reason behind its resounding success in China.
Some experts claim that due to Starbucks market domination, the price rise will have barely any impact on the customer inflow. According to a recent study, millions of Chinese people consider their visit to Starbucks as a sign of success and upward mobility.
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