Watch CBS News

Starbucks Paying Less For Coffee Beans, But It Won't Affect You

PHILADELPHIA (CBS) – The type of coffee beans Starbucks buys and serves to customers is now cheaper. Last year, a pound of coffee cost $1.65.  Now, it's about $1.11. That's a 33 percent drop, and it's only expected to get cheaper.

Officials in Brazil expect coffee farmers to have a big harvest this season, creating an oversupply of beans, which means more of a drop in prices. But, don't expect to save any money when you buy that high-end cup of joe.

For a company like Starbucks, coffee beans only make up about 20 percent of its overall cost. Other factors influencing the price you pay is how much employees make. Take home pay for baristas is going up, especially with more places across the country increasing the minimum wage. Starbucks is also paying tuition for more than 4,000 employees.

So, how can you trim your coffee budget, without cutting the caffeine buzz? The most obvious solution is brew at home. Whole beans tend to be cheaper than pre-ground coffee, and an inexpensive coffee grinder can pay for itself fairly quickly. Also, buying that coffee in bulk can make for bigger savings.

If you can't give up that daily coffee shop ritual, consider buying coffee shop gift cards at a discount on resale sites, and sign up for coffee shop loyalty programs, which can come with perks like a free drink after a certain number of purchases.

 

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.