Chains including Luckin Coffee, Starbucks and Tim Hortons have increased the prices of their beverages blaming multiple factors, including higher operating costs.
Although typically known as a nation of tea drinkers, China is one of the world’s fastest growing coffee markets, with nearly 110,000 shops operating in larger cities by April, as younger consumers drive consumption, according to consultants Deloitte.
The chains, which are amongst China’s largest coffee players, have raised their prices by between 1 yuan and 3 yuan, according to menus on mobile apps and media reports, with the topic going viral on social media in China.
According to Starbucks, it has adjusted the prices of some of items after ‘comprehensive evaluation and consideration of multiple factors’ including operating costs. This is the brand’s first increase since 2018 and now, after the price increases a Starbucks Americano costs 30 yuan, up from 28 yuan. Packaged coffee beans and merchandise such as mugs have remained unaffected, however.
Luckin Coffee has signed account operational costs such as rent, manpower and raw material in their price increase, which has seen the cost of some beverages increase by around 3 yuan.
