Starbucks Japan raises coffee prices from Oct. 9
Starbucks will raise prices in Japan from Oct. 9, lifting the short size of brewed coffee to 415 yen from 394 yen as the company passes on higher raw material, logistics and energy costs to customers.
The increase, though modest on a per-cup basis, adds to evidence that restaurant and café chains are still defending margins in an environment where input costs remain sticky even as some coffee commodity prices have eased. Starbucks Coffee Japan said the hike will apply across all stores and cover beverages and food other than limited-time items, with the short-size Starbucks Latte rising to 475 yen from 460 yen.
For investors, the move highlights the pricing power of the Starbucks brand in Japan, one of the company’s more important international markets, and the risk that consumers could eventually push back if repeated increases outpace wage gains. It also underscores a broader sector trend: rivals including C-United’s Cafe Veloce and Doutor Coffee have already announced price increases, showing the pressure is spreading across Japan’s café industry.
Starbucks’ U.S.-listed shares have been under heavy pressure recently, with the stock trading at $95.83 on Sept. 18 after touching a 50-day average near $104 earlier in the year. The latest price action leaves the stock well below its 50-day moving average, while the RSI reading of 10.8 points to deeply oversold conditions, though those technicals do not change the underlying earnings story: management still needs to protect margins while supporting traffic.
The company has been leaning on menu innovation, marketing and Starbucks Rewards engagement to reinforce customer loyalty, but price increases can only do so much if coffee, labor and energy costs keep rising. Investors will be watching for signs in upcoming sales updates and earnings that Japan’s pricing actions are being absorbed without damaging demand.
| Entity | Gains | Losses |
|---|---|---|
| Starbucks Japan | ▲Margin relief | ▼Risk of traffic softness |
| Rivals: Doutor, C-United | ▲Industry-wide pricing cover | ▼Consumer price sensitivity |
| Starbucks shareholders | ▲Better cost pass-through | ▼Near-term demand uncertainty |
| Japanese consumers | ▲None | ▼Higher café prices |