Starbucks has announced it will hike its prices in 2022, blaming supply problems and a rise in labour costs.
The coffee giant, which is based in Seattle and employs 230,000 people around the USA, reported a 31 percent rise in profits of $816 million in the last three months of 2021.
The New York Times reports total revenue was $8.1 billion, which was a 19 percent rise compared to the same quarter in 2020.
Prices have risen in October 2021 and again in January 2022, executives from the company said more rises are on the way in a report on the company’s quarterly earnings released on Tuesday, February 1.
Starbucks chief executive Kevin Johnson said: “We anticipate supply chain disruptions will continue for the foreseeable future.
“We have additional pricing actions planned through the balance of this year, which play an important role to mitigate cost pressures including inflation.”
The cost of menu items rose by eight percent in 2021, the biggest rise in more than 20 years, according to data from the government.
The company has also increased spending on Covid-19 pay, including paid time off for workers to get their vaccination or to those who had contracted the virus.
Mr Johnson continued: “Although demand was strong, this pandemic has not been linear
He added the company had “experienced higher-than-expected inflationary pressures.”
John Culver, the chief operating officer, also said the price increases had not made “any meaningful impact to customer demand.”