Starbucks Coffee Japan is implementing location-based pricing at select stores to cope with increasing material and labor costs.
Starting February 15, the company will raise prices on certain drinks, including coffees and lattes, at about 30 percent of its stores. Prices will increase by an average of 6 percent at locations in highway rest stops and airports, while stores in urban areas, including Tokyo’s 23 wards and Osaka City, will see a 4 percent hike.
With over 1,900 outlets across Japan, Starbucks has been raising prices annually since 2022. The company explains that this price increase is part of its regular pricing review and that it carefully considered store locations and neighborhood factors before making the adjustments.
Other major brands in Japan, including McDonald’s and Skylark Holdings, have also adopted location-based pricing strategies in response to rising operational costs.
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