Starbucks raises prices in 12 Chinese cities
Updated: 2012-11-16 22:02
By Tang Zhihao (chinadaily.com.cn)
Starbucks Corp has raised prices for five espresso drinks in 12 cities in China to offset higher operating costs from Nov 6.
The United States-based company added 2 yuan (30 cents) to the price of Café Mocha, Café Latte, Cappuccino, Café Vanilla Latte and Caramel Macchiato. The price hikes cover its outlets in 12 cities, including Tianjin, Chongqing and Dalian.
The company said the price adjustment is a reflection of changing operating costs, competitive dynamics and other factors in these cities.
It is the second time this year the company has raised prices for its drinks in China. In early 2012, it increased prices of espresso coffee, freshly brewed coffee and hot chocolate by 1-3 yuan.
Starbucks reported lower operating margins in China in the fourth quarter of 2012, as it increased spending to support expansion.