Why is Starbucks so Expensive?

5,950 Views Updated: 17 Aug 2017
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Why is Starbucks so Expensive?

The coffee addicts find it nearly impossible to function throughout the day without coffee. At times, when the day is busy, they might even go on to consume more than the cups of coffee one should ideally drink in a day. It is the energy booster which keeps everyone going. Moreover, for coffee lovers, the coffee brand is of utmost significance. Not only is the brand a marker of their style and taste, it also provides them with a sense of belongingness. There are several popular cafes and coffee brands which serve their signature brewing beverage in different flavors, and at different prices.

While some are moderately priced, others are quite expensive. Speaking of expensive coffee brand names, Starbucks is quite popular for its sky-rocketed prices. Well, there are various factors which determine how expensive a brand would be. To get a bigger picture, here's why Starbucks is so expensive.

#1. Brand Value

Like all the other popular brands, Starbucks has an impressive profit margin. Well, this does not come as a surprise that the popular coffee company, with its remarkable brand value, is one of the most expensive coffee brands.

Why is Starbucks so Expensive?

(Image Courtesy: Daily Mail)

#2. Ambience

The prices of a coffee house or any restaurant depend a lot upon the kind of ambience that the customers are provided with. A nice location, captivating setup, decent staff, and air conditioning all go in to make Starbucks one of the plush brands in the league.

Ambience in starbucks

(Image Courtesy: So Delhi)

#3. Quantity And Quality

While Starbucks is known to be using the best quality ingredients like milk and beans for its coffee based beverages, they also go a bit more on the quantity as compared to the other coffee brands. The best of quality and quantity are also the reasons why Starbucks is so expensive.

Quantity And Quality Starbucks

(Image Courtesy: The Week)

#4. The Freebies

Things like extra cream or extra chocolate are quite a common phenomenon at Starbucks. These extras, obviously, lead to a hike in the price of your beverage. Well, that sure shoots up to the already high prices of Starbucks.

Starbucks

(Image Courtesy: Starbucks News)

#5. Location

One of the most surprising reasons, subway stations are the places where the brands are insanely priced. Starbucks has a lot of its outlets at subway stations of various metro cities. As we all know that subways are the zones which could lure the maximum footfall of hungry and tired customers, it is natural for Starbucks coffee to have a high demand. Going by this logic, the location of an outlet of a brand is a great determining factor of how high priced it would be.

Starbucks

(Image Courtesy: Jobs In Dubai)

#6. Exclusivity

Many go on to say that the reason why Starbucks is so expensive is simply because it can afford to be. Over the years, the brand has created an exclusive brand name for itself. Ergo, keeping a lower price would only mean lowering the exclusivity of the brand.

Starbucks

(Image Courtesy: Snopes)

We would love to hear from you. Why do you think Starbucks is overpriced? Kindly use the comment box to share your thoughts and opinions with us.

(Featured Image Courtesy: CoffeeBI)

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