Starbucks...a peek into the future?

How is it that in 2013 Starbucks will be saving over $700 million over the cost of the coffee beans it purchased last year...and yet they are RAISING the cost of a cup of coffee for the consumer?  Could it...perhaps...have to do with their anticipated rise in labor costs, due to government mandates yet to be applied (i.e. ObamaCare)?   I just sip my coffee and smile when people go on about "free" healthcare...Dennis

STARBUCKS HIKING PRICES DESPITE LOWER BEAN COSTS

By CANDICE CHOI

— Jun. 21 4:06 PM EDT

NEW YORK (AP) — Starbucks wants a little extra change for that latte.

The Seattle-based coffee company says it's hiking prices on average by 1 percent nationally starting on Tuesday. But it says the price for many drinks, such as medium and large brewed coffees and Frappuccinos, won't change in most its 11,000 U.S. cafes.

For a small brewed coffee, the price will increase by 10 cents at most. Other drinks could increase by more than that.

"Less than a third of beverages will see a small increase in most stores," said Lisa Passe, a Starbucks spokeswoman. She noted that the increases will vary by region and may apply to different drinks.

Depending on the market, Starbucks Corp. notes it's the first price hike most customers will see in about two years.

The price hike comes despite falling coffee costs that have boosted the company's profits. In the last quarter, Starbucks cited lower coffee costs for a stronger operating margin, which represents the money it pockets from sales after subtracting what it pays to keep stores running.

And those lower coffee costs are expected to continue padding its bottom line.

Earlier this month, a Janney Montgomery Scott analyst issued a note to investors saying Starbucks is likely to benefit from lower coffee costs for the next few years. Based on the price of a coffee contract at the time, Mark Kalinowski estimated that Starbucks would pay about half the $1.4 billion it did for coffee in 2012.

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