Steep coffee. Cue groans and grumbles.
On Tuesday, Starbucks, the Seattle-based coffee chain, is preparing to boost its prices, AP reports. The cost of most affected drinks will rise somewhere between a nickel and 20 cents, the company says. The new price amounts to a price increase of roughly 1%.
For most people, this means the price of a brewed coffee will jump 10 cents, bumping the cost of a large coffee in most U.S. shops to $2.45, according to AP, although that figure varies regionally. The company says it will use the extra revenue to offset wage increases and rising rent.
Last year Starbucks SBUX 0.12% raised its prices by a similar amount. Coffee prices had then been on the rise in commodity markets.
Some critics weighed that the last price hike went too far. One commentator decried it a “luxury tax.”
This year’s slate price increase, on the other hand, has nothing to do with the cost of coffee. Arabica futures, notes MarketWatch, have declined to 42% since last year’s high.
The new prices will affect certain brewed coffees, not the bagged variety.
Is the increase all because of rent? Perhaps that claim holds some water. On a recent episode of Fortune Live, Zillow CEO Spencer Rascoff told host Leigh Gallagher that the the presence of a Starbucks within a quarter mile of a residence increased its property cost by about 96% on average between 1997 and 2014. Perhaps the company is a victim of its own halo effect.