Well-known coffee brand raises prices twice in six months, consumers outraged: 'We're done drinking!'

Costa Coffee Raises Prices Twice in Six Months, Sparking Consumer Outrage

When it comes to coffee, many workers automatically think of their favorite coffee brands, including China's local Manner and Luckin, America's Starbucks, and Britain's Costa Coffee. While Shanghai is celebrating Costa's reopening, the coffee chain has angered many consumers in the UK after raising prices for the second time in six months.

According to Britain's Daily Mail on June 3rd, Costa Coffee raised its prices for the second time in six months, with the latest average increase of 14 pence per drink sparking consumer outrage. (1 British pound = 100 pence, 1 British pound ≈ 8.32 RMB)

Consumers reported that a flat white rose from £2.95 to £3.30; a medium skim milk latte increased from £3.10 to £3.35; and a small cappuccino went up from £3.15 to £3.50.

Costa Coffee's latest price increase took effect on June 1st. The coffee chain stated that drink prices vary by location, with the specific increase depending on the type of beverage and cup size, while the average price increase across drinks is 14 pence.

Company Response and Consumer Reactions

According to the Daily Mail, Costa's price increases represent the company's attempt to alleviate inflationary pressure and pass on rising costs to consumers.

A spokesperson for Costa stated that like all retailers, Costa is facing unprecedented inflationary pressure leading to rising costs. This is also challenging for consumers, which is why Costa has been working hard to absorb costs. Nevertheless, Costa had to make this difficult decision to increase drink prices.

Some netizens were surprised to wake up and find that Costa Coffee's prices had increased.

Netizens expressed their frustration on social media, with one long-time customer of 14 years stating they now have to pay £3.70 for a large coffee and will no longer patronize the establishment.

Another netizen mentioned that a Frappé cost only £3 last year but now costs £3.80, adding that they originally chose Costa because its coffee was cheaper than Starbucks.

Others commented that Costa's price increase is too steep and will result in loss of customer traffic, questioning how this benefits the company's operations, as people can no longer afford the alarmingly high coffee prices.

Economic Context and Costa's Response

Coffee prices remain high due to simultaneous issues including poor coffee bean harvests, unstable supply chains, and rising transportation costs.

However, Costa stated that actual coffee costs represent only a small fraction of their overall expenses, as the company struggles to cover rising costs in other areas such as energy prices and employee wages.

Costa's price increases have left some consumers feeling intensified pressure from rising living costs. BBC reported last month that the UK's inflation rate has reached 9%, the highest level in 40 years. Rising living costs have triggered a cost-of-living crisis, forcing the government to implement a series of measures.

In addition to raising drink prices, Costa has also introduced new promotional activities, including daily breakfast deals at £1 and £2. Additionally, Costa offers discounts for its club members: buy 8 drinks to get 1 free, and buy 4 drinks when using a reusable cup to get 1 free.

Image source: Internet

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