Why Is Starbucks So Expensive – Major Reasons

There’re many reasons why Starbucks is so expensive some of which include the brand reputation, quality of their product, and employee training, among other reasons.

Established in 1971, Starbucks is a popular and one of the most luxurious coffee brands with numerous retail stores globally.

This article discusses exclusively the reasons why Starbucks is so expensive, the most expensive Starbucks drink, among other information about Starbucks.

Why Is Starbucks So Expensive

Brand reputation, quality/taste, employee training, etc are some of the reasons why Starbucks is so expensive.

Let’s now exhaustively discuss the reasons why Starbucks is so expensive.

1. Quality Of Their Products

People are always willing to pay a premium so far as they’re certain of getting value for their money.

If you’re looking for high-quality coffee and food, then you should consider patronizing Starbucks.

Starbucks is known for making use of high-quality ingredients in its coffee and food.

These high-quality ingredients are expensive hence contributing to why Starbucks is so expensive when the production costs are passed on to the purchasing price of the Starbucks products.

2. Ambience Of Their Shop

If you’ve ever visited a high-end restaurant or hotel, you’ll find out that a bottle of water sold for maybe $3 in other shops could be sold at over $10 in high-end restaurants or hotels.

The reason for the expensive price is that you’re not only paying for the bottled water but you’re also indirectly paying for the ambiance of the environment.

Starbucks coffee outlets are well equipped for customers’ comfort and you can as well stay in their shop and get some work done over a cup of coffee for a few hours.

Additionally, for people who are not drinkers, a coffee shop can offer a great alternative to a bar when it comes to social interaction.

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All these additional services are added to the prices of Starbucks coffees and foods thus contributing to the reasons why Starbucks is so expensive.

3. Loyal Customer Base

Starbucks has built a huge loyal customer base over the years because of the quality of its products.

These Starbucks customers are willing to pay any amount for any Starbucks product.

Therefore, the company can always increase the prices of their products knowing full well that their customers will always patronize them irrespective of the price.

4. Employee Career Development

Starbucks holds an exceptional record of investing heavily in their employees’ career development at the beginning and throughout their careers.

These career developments come at a cost and the company passes the cost to the price of Starbucks coffees and foods thus contributing to the expensive price of Starbucks products.

Although these career development activities of Starbucks staff contribute to driving the price of Starbucks but it’s a commendable activity as it increases the company’s corporate image and also improves their staff work ethics.

5. Shop Location

If you’re very observant, you’ll find out that Starbucks hops are located at strategic places where there’s a concentration of people and also at a location that is easily accessible to people.

Renting shops at these strategic locations is very expensive and the cost of renting these shops is passed on to the price of Starbucks products which makes them so expensive.

6. Company Overhead Cost

Starbucks is a very large company hence has many departments, shops, employees, equipment, etc. which contributes to the overhead cost of running the company.

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The cost of maintaining these running costs is high and in order to keep the company afloat is expensive and is hence added to the cost of their products which make contributes to why Starbucks is so expensive.

7. Labor Costs

Starbucks is a very large company with numerous outlets and a workforce across the globe.

Starbucks has hundreds to thousands of employees across their outlets globally and these employees receive handsome salaries which are added to the cost of Starbucks products.

Additionally, Starbucks also pay taxes to the government which is all part of their overhead cost.

Also, Starbucks also bear losses incurred by any of their employees as a result of mistakes or by any other means during the course of discharging their activities.

These labor costs are one of the main reasons why Starbucks is so expensive.

8. Brand Popularity

Starbucks is a leading name when it comes to coffee and food globally with numerous outlets and massive recognition across the globe.

Over the years, Starbucks has become so popular and has grown to a household name in America as a leading name when it comes to coffee.

As they grow in popularity, they as well increase the cost of their products as people will be willing to buy their coffee at any price.

9. Starbucks Coffee Is Addictive

If you’ve ever tasted Starbucks coffee, you’ll attest that their coffee tastes differently.

The quality taste of Starbucks coffee is because of the high-quality ingredients they use in making their coffee.

Therefore, you wouldn’t want to go get a coffee in any other coffee shop if you’ve ever tasted Starbucks coffee.

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Starbucks is so expensive because they already know that their customers would always patronize them even if they increase the price of their coffee.

10. Convenience

Although people can decide to make a cup of coffee at home before leaving for work in the morning it’s more convenient to walk into a nearby Starbucks shop and pick up a cup of rich and well-prepared Starbucks coffee.

The convenience of not bothering to stress yourself to make a coffee in the morning and washing the cup of coffee thereafter is enough reason why it’s more convenient to purchase a cup of coffee from Starbucks instead.

Starbucks capitalizes on convenience and increases the price of its coffee at will since they know that people would always buy it.

What Is So Special About Starbucks?

What makes Starbucks so special is that they make use of high-quality ingredients in making their coffee and also have well-trained employees.

What Is The Most Expensive Drink In Starbucks?

Presently, Super Venti Flat White is the most expensive drink in Starbucks.

The Super Venti Flat drink contained almost 11,000mg of caffeine.

Is Starbucks More Expensive Than Other Coffee?

From recent statistics, Starbucks coffee is less expensive than other coffee competitor brands.

Submission

Starbucks is a leading name when it comes to best-quality coffee brands in America and beyond since the establishment of the Starbucks company in 1971.

Starbucks is so expensive because of the quality of their coffee, loyal customer base, labor cost, overhead costs, etc.

This article exhaustively discusses the major reasons why Starbucks is so expensive, the most expensive Starbucks drink, and what is so special about Starbucks, among other information about Starbucks.