How Rising Coffee Prices Due to Drought Could Hurt Starbucks’ Bottom Line

By Douglas McIntyre  •  October 2, 2024

Starbucks faces a significant challenge as rising coffee prices, driven by drought, impact its earnings and same-store sales. With coffee at multi-year highs, the company is forced to either increase prices or absorb the costs, risking lower profit margins. This issue highlights the effects of climate change on the food supply chain, similar to rising cocoa prices in West Africa. Starbucks must navigate these challenges to maintain customer satisfaction while managing costs.

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