Why are the drinks in Starbucks and similar cafes so expensive?

Supply and demand. If people are willing to pay more for a product or service that they perceive to be better, someone will provide it.

There is a lot of waste in the coffee business. If the coffee is not fresh when you get it you will not go back for more. During the slow periods of the day, they may only sell one cup out of a pot, then have to dump it because it has been sitting too long.

Same with subway and their condiments.

You are paying for that waste.

Where I live, coffee is really cheap, even at places like starbucks, but the starbucks is almost twice the price even here, but, its not even $1.50, So still cheap.

I’m no slick banker or economist, but I always suspect they are more expensive because of a few reasons. First, they tend to seek out prime locations where rent or purchase price of the local is more expensive, their package system is expensive, ceramic cups can be re used, foam or whatever with logos that are thrown away cost money. and they have generally more staff, like 5 teenagers on 10k a year each, instead of 2 experienced adults on 17k each and 1 part time helper.

I do like their coffee, and some of their not so coffee drinks, so i suspect they probably do use quality ingredients too.

A small coffee costs $1.40 at my Starbucks. Consider also that Starbucks makes a serious effort to get their coffee from responsible sources.

Simply because their coffee is so delicious.

Are referring to the specialty drinks? Like, the lattes and so forth? I’m not sure the comparative price of espresso beans to regular coffee beans, but I’m pretty sure it costs more. Plus, the cost and maintenance of the espresso machines is a bitch. Not to mention the various syrups, milks (whole, skim, 1%, 2% and soy – some of which can go badly very fast. I’ve thrown out a LOT of bad milk as a barista) and powders – if you’re working with the frozen drinks theres a lot of different ingredients that go into that. Plus you have to train each barista to use the espresso machine, blenders, how to make each drink – so on and forth. It adds up. And like @nikipedia said, if you’re using good product that is fair trade and/or organic, that is going to cost more.

@flutherother that link doesn’t work

@noelleptc @nikipedia Yep I mistyped. I was referring to the specialty drinks.

They’ve built a brand based on providing a high quality product (whether or not it is), a consistent ambiance, environmentally and worker friendly beans. They charge as much as they can while still maintaining enough volume to keep customers coming in. In other words, they are profit maximizers. They exist because people want their product.

Having said that, and having been a regular customer for three years, I have suddenly stopped being their customer. This was not planned. However, I got a cold or something and wanted tea, and I went to another shop nearby, and the tea I got was just fine for me. I could get a bagel next door that was better than any of the expensive cakes Starbucks sells, and after two weeks of this, all of a sudden, I don’t want coffee any more.

I am saving probably around two dollars a day. It may even be healthier. Weird.

Where I used to work there was a Starbucks in the cafeteria and the prices were in line with what @noelleptc said. But if you go across the street to the Starbucks in the strip mall it’s a lot more expensive. I have to think there was a deal made for a lower price in the company, like a built-in discount, since the only competition in the building is a condensed Maxwell House machine that tastes like soap.

But I’d have to say it’s so expensive because people will pay it. Hell, even I’ll pay almost $4 for the Spiced Caramel Apple drink even though I can make it at home after paying $4 for a large jug of apple cider.

Because that’s what people will pay.

I’ll tell you why. Because people think if it costs more, then it must be good, if it’s cheap, then it must not be good.

It’s that simple, a lot of people who “like” coffee, actually only want to dump a ton of sugar and cream in their mouth.

I have long eschewed the specialty drinks at Starbucks. Most of the brewed coffee tastes too burnt so usually what I get is an Americano.

Because you still buy it.

Where I live, a regular (tall? whatever they call it) coffee is about £2.25, which is about $3.30. I don’t buy them. Well, except for the occasional gingerbread soyamilk lattes around this time of the year, which I adore, and can’t make at home. Normally I drink coffee black and decaff. and spending two quid on a black coffee is just a waste.

Because they taste three times as good as the coffee from 7–11 or McDonalds, so you have to pay three times as much.

Actually, Starbucks used to be known for good treatment of workers, but not now.

Also, not really “Fair Trade”, either. A couple of their blends are, and they’re marked up even more. Check out the bags in one of the stores sometime. I believe I read something about how Dunkin Donuts actually uses more Fair Trade blends.

That’s a very good question, may I suggest you watch Black Gold, it’s a shocking exposé of the coffee industry.

Because people will pay that amount. If you think it’s too expensive, don’t buy it. Vote with your wallet.

@PnL Strange it worked yesterday. Try this one

There is one legit explanation for Starbucks prices and all prices: capitalism. Supply and demand. If you don’t like that, you can do things like voting wisely at election times, rallying for the cause, and voting with your money by not shopping at Starbucks, etc. The main thing is consistent and systematic about it.

@nicobanks GA for …voting with your money…. Right on sister/brother! Putting your money where your mouth certainly speaks very loudly, especially when done collectively.

@Adagio :) (And that’s “sister.”)

@nicobanks I strongly suspected so but hey, you never can tell : ^)

You are paying for advertising and logo.

@WestRiverrat Goodness me, where do they make coffee in pots?

I don’t think coffee is expensive, I think Subway is ridiculously cheap. Besides, if you bought your food from Starbucks as well, I’m pretty sure that it would be much more expensive than your drink.

A more apposite question would be “Why are coffee growers paid so little?”