If you’re budgeting for Starbucks this year, plan to budget a little more.
The Seattle-based coffee chain is planning menu price increases for the third time since last October, the New York Post reports.
While the Bureau of Labor Statistics has reported some of the highest inflation rates and consumer prices in decades, the company also pointed to ongoing supply chain concerns and rising labor costs that have consumed Starbucks’ profits.
“We have additional pricing actions planned through the balance of this year, which play an important role to mitigate cost pressures, including inflation, as we position our business for the future,” Starbucks CEO Kevin Johnson said during an earnings call Tuesday, the New York Post reports.
The CEO said the Omicron COVID-19 case surge caused additional costs and staffing shortages that were in “excess of our expectations.”
The Post reports delivery and transportation of key goods grew more expensive as the company’s third-party partners experienced delays and labor shortages, but Starbucks did not say which menu items will be more expensive or how much average prices are set to increase.
Johnson said Starbucks is taking a “thoughtful” approach to its price hikes, and the two previous increases — the first coming last October and the second in January — have not softened customer demand.