By Jane Han
Staff Reporter
For Kim Joo-hee, an office worker who buys coffee every morning, paying 4,100 won for a Starbucks latte feels a world different from paying 3,800 won.
"It's only a 300-won difference," admits the self-claimed coffee addict, "but since I buy a latte from Starbucks every day, five days a week, I'll be 6,000 won poorer at the end of every month."
For java buffs and dedicated patrons like Kim, Starbucks' latest surprise price hike is personal.
Starting Jan. 1, the global coffee giant raised the prices of some of its most popular selections, including the Americano, Caramel Macchiato and latte, by 300 won.
It was the company's first price hike in five years, but consumers immediately reacted by bashing the espresso chain on various Web forums for not providing enough prior notice.
Joyce Park, marketing head of Starbucks Korea, defended the latest decision by stressing a rise in rents for store space and labor costs.
"We've done a lot over the past five years to absorb the rising costs," she said, adding that Starbucks Coffee is still more than 10 percent cheaper than rival coffee retailers even after the price increase.
"We think that our new prices are reasonable and relevant."
Whether consumers like it or not, at Starbucks, what's done is done. So the question now is will other competitors use this opportunity to also increase prices.
As of now, the biggest rivals Holly's, Coffee Bean, Angel-in-us and Pascucci say they have no immediate plans to follow Starbucks' actions.
"We anticipate a high level of consumer dissatisfaction if we were to carry out a price hike, so there are no plans for changes in the near future," said an executive of Coffee Bean.
Holly's and Angel-in-us representatives agreed, but implied that it would be inevitable to make appropriate changes as needed if costs continue to rise.