How Much Does It Cost Starbucks To Make A Cup Of Coffee?

you walk into the nearest starbucks cafeteria and order your favorite drink. And if you’re lucky, there’s a place inside where you can relax while you enjoy your order.

but have you ever wondered how much it costs at starbucks to make a cup of coffee? after all, you’re spending a dime on every cup you order.

Reading: How much is a starbucks cup of coffee

Keep reading to get all the answers to your questions!

the cost of the markup on a cup of starbucks coffee

the cost to prepare a cup of coffee for starbucks is $1. that dollar includes direct labor for support staff, baristas, and cashiers, at a cost of $0.01 per employee.

but what does that mean in terms of markup? well, because starbucks belongs to high-end beers, the markup is 80%.

This means that whatever it cost the company to make a cup of coffee, add 80% to the price and that would be the price at which Starbucks sells its beverages.

80% markup is quite common among many coffee shops. so as outrageous as it sounds, it’s actually what you’ll find in mom-and-pop stores, too.

the benefits that starbucks obtains

80% of starbucks revenue comes from the 15,000 coffee shops it owns around the world.

this reaches $3,800 per day in all owned stores and $520 per day per store. that also means a cup of starbucks coffee makes a 6% profit.

Starbucks locations are often in areas of high visibility and high traffic. its operating margin reaches 16%. this coffee shop sells most of its coffee to people who are always on the go, leading to higher sales and profits.

A good markup range is 70% to 80%. With millions of coffee lovers enjoying Starbucks, it’s safe to say this coffee shop is very profitable.

why are starbucks coffee prices going up?

Recent news announced that starbucks would raise coffee prices this year. doing this more than offset the cost of labor and goods for the cafeteria.

Starbucks CEO Kevin Johnson is warning the public of more price increases this year due to inflation. Another factor contributing to the price increase is that the cafeteria did not meet its revenue goals during the last quarter of 2021.

Giving more benefits to employees also influenced the decision to raise coffee prices. Starbucks had to give more paid sick leave to employees who struggled during the pandemic.

regardless of coffee prices, starbucks prides itself on continuing to make a profit because most people love the coffee it serves.

the lowest and highest starbucks prices around the world

yes, there are several starbucks coffee shops around the world. in some places, you’d be surprised to see one on every corner!

but have you ever wondered if all starbucks coffee prices are the same? well, they’re not.

starbucks prices depend on the cost per coffee, the cost of labor, rent and other indirect expenses. most of these expenses change depending on where in the world the store is located.

here are the highest and lowest starbucks prices around the world.

starbucks lowest prices

the united states has some of the cheapest starbucks coffee prices in the world. while prices rose between 10 and 20 cents, the average price only reached $2.75 in the united states. but new york has the most expensive starbucks rates, charging $3.25 for a tall cappuccino.

And, if you love trying new seasonal drinks, especially around the holidays, be prepared to spend at least $5 in the US.

in the uk, starbucks prices are a bit more expensive. an average tall latte costs $2.88. prices in australia, new zealand, canada and ireland are also higher.

starbucks highest prices

russia tops starbucks prices, charging at least $12.30 for a latte. In Asia, where Starbucks is known as a high-end, luxury coffee brand, it’s $7 a cup.

countries like switzerland, belgium, germany and norway also charge for some of the most expensive starbucks coffee. you should pay at least $6 for a tall cappuccino in zurich and berlin!

that same drink costs $5 in oslo, norway, and about $4 in stockholm and brussels. north africa and the middle east also charge high prices for starbucks coffee:

in saudi arabia, a cup of coffee costs at least $7
united arab emirates charge around $5.60 per cup
egypt charges around $7.50 per cup

Comparing South America to the United States, you can expect to pay significantly less for your favorite Starbucks drink.

frequently asked questions

Now that you know how much a cup of coffee costs at Starbucks, let’s answer some other questions you may have.

here are some frequently asked questions about starbucks prices and coffee costs.

is starbucks coffee too expensive?

Even though there was a decline in coffee bean prices, Starbucks never tried to lower its rates. starbucks coffee can be a little more expensive than other artisan coffee shops, but overall, it’s considered pretty standard for coffee shop prices.

is starbucks coffee made from premium quality coffee beans?

starbucks doesn’t roast the best coffee beans out there. but, the coffee he sells is super consistent. As a result, while the beans may not be top quality, they tend to taste great and consistent no matter where you go.

how much is a starbucks cappuccino?

Taking into account coffee beans, ingredients, and labor costs, a cappuccino should cost the company $1.10. however, they will usually charge you more, such as $3 or more.