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Starbucks to introduce location-based pricing at some stores nationwide

27 Comments

Starbucks Coffee Japan will introduce a "location-based pricing" system from Feb 15, with increased prices depending on the location of the store. 

Of the 1,991 stores nationwide (as of the end of last December), about 30% are affected, including those in airports and Tokyo's 23 wards, the company said in a statement on its website. The current prices will be maintained at about 70% of stores that are not affected.

In stores in service areas and airports (categorized as type A), prices will be raised by an average of about 6%. In all of Tokyo's 23 wards, parts of Osaka, Fukuoka and other major cities (categorized as type B), prices will rise by about 4% on average.

The company says that this is "for sustainable store management."

Location-based pricing has also been introduced by other restaurant chains to maximize profits.

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27 Comments
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Starbucks is already far too expensive for the products it sells. Just another reason why I am not going to "subsidize" their existence.

17 ( +21 / -4 )

I'm no lover of huge corporations. But, you can't really blame them if rents, labor, and other operating costs are higher in those areas. Four and six percent seem reasonable considering how companies like Starbucks raise prices in the US, it's typically for higher percentages, and more often.

-4 ( +4 / -8 )

You hate Starbucks until you need it.

-6 ( +4 / -10 )

What about the other way? The people in my area are poor relative to other prefectures and cities.

8 ( +10 / -2 )

service areas and airports (categorized as type A), prices will be raised

If I was a conbini owner in these areas, I would take full advantage of this and slightly lower coffee prices to lure in those who just need their caffeine for the day.

9 ( +10 / -1 )

Crap expensive coffee why anyone goes there is beyond me.

0 ( +11 / -11 )

Won't affect me since I don't buy their overpriced crap.

-3 ( +10 / -13 )

Don’t like the price of it, don’t buy it.

or go somewhere that has a better price.

Same as anything else.

-3 ( +5 / -8 )

Starbucks coffee is overpriced garbage as many other posters say. The only reason to go there is free wifi and - if you're lucky - somewhere comfortable to sit and chat with friends.

-3 ( +3 / -6 )

How are McCafe ground bean serving prices there. I do not do the food. But, steamy hot winter morning hit.

1 ( +2 / -1 )

Forget overpriced coffee..

Drink green tea..

-1 ( +3 / -4 )

30% are affected, including those in airports

From what I gather, prices at airport Starbucks have always been much higher than regular Starbucks.

3 ( +3 / -0 )

Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price. Where: % Change in Quantity Demanded: This is the percentage change in the amount of goods or services that consumers are willing to purchase

https://corporatefinanceinstitute.com/resources/economics/elasticity-of-demand-formula/#:~:text=Price%20Elasticity%20of%20Demand%20%3D%20%25%20Change,Quantity%2FOld%20Quantity%20%E2%80%93%201.

The reality outside the classroom, Starbucks behaviour is the very definition of leveraging greedy cynical corporate price gouging at it deceptive predatory core.

1 ( +2 / -1 )

It wont work and consumers will retaliate.

Many tried it and failed.

2 ( +3 / -1 )

""The company says that this is "for sustainable store management.""

We all agree that the cost of running a store in larger cities such as Tokyo and possibly the airports is higher BUT the number of customers is also significantly higher which translates to more sales and higher profits, so to claim that these stores are loosing of not making enough profit is a bunch of BS.

1 ( +3 / -2 )

It is grossly regressive, there is a number of "models",

Example, in Kochi foot fall could be "unstable" affecting location turnover ratio, in comparison to Nagoya.

So prices in Kochi could well increase to "bridge" the gap, initially in small increments, dependent if competitors are in close proximity.

0 ( +1 / -1 )

MisterDonut is far better than Starbucks in terms of variety and pricing. and soon Randy's Donuts is coming to Japan too.

-1 ( +2 / -3 )

Perhaps now people will stop using them as libraries. And how about introducing double pricing for the selfish hordes who ‘bag’ the seat opposite them?

4 ( +4 / -0 )

Perhaps now people will stop using them as libraries.

We live in a lovely house, which would make a killer cafe. We have fireproof walls and furnishings and the kitchen is even plumbed with an extra handbasin to make licensing easy. However, people with MacBooks sitting around all day drinking one 600 yen coffee would be one of several dealbreakers. Needing 8 parking spaces and 8 tables for probably just 8-12 customers is another. Its a pity because my wife grew up helping her mother in her kissaten and would love to do it. If someone is nonstop on their computer or phone, your cafe doesn't even become a communication space. You might as well just set up tiny booths.

4 ( +4 / -0 )

If someone is nonstop on their computer or phone, your cafe doesn't even become a communication space. You might as well just set up tiny booths.

Indeed, most cafes here are treated as places to silently study, with the tapping fingers on keyboards the only sound to be heard. Was given the look for daring to talk in one Starbucks. Never went back.

1 ( +2 / -1 )

this is normal for countries that has a large number of wealthier foreign visitors frequenting specific places and driving up prices and profits. Japan is becoming one of those countries. I remember just a week ago some ramen shops selling time slots to visit. I remind you also the whole BS around mount Fuji visit fees etc. and introduction of dual pricing for certain attractions.

I know this is hard to swallow for some foreigners (probably harder for elderly people) who literally dedicated their life to Japan but Japan is becoming just another tourist destination with lots of tourist traps, scams, mediocre service and wealth gap between visitors/locals.

2 ( +2 / -0 )

This idea is going to go down about as well as sour milk.

0 ( +1 / -1 )

Prepare to see those coffees getting jacked up in the big cities, and high tourist areas. I'll stick with Komeda. better seating, better menu, and tad cheaper.

1 ( +1 / -0 )

Milking tourists of a bit extra to subsidise locals impoverished by their government's policies and low wages.

I'm happy to use Starbucks. They were the only ones offering a non-smoking place to meet people and may still be the only place to offer soya milk as a standard option.

1 ( +1 / -0 )

This makes sense as workers in big cities receive a higher salary than the smaller cities. Also people going to the airports have a lot of money for holidays.

-2 ( +1 / -3 )

You hate Starbucks until you need it.

Why in the world would anyone ever "need" Starbucks? There is infinitely better coffee at any convenience store, or McDonald's.

0 ( +1 / -1 )

My wife absolutely loves cafes, and Starbucks is the ultimate for her to sit there watching people while essentially drinking an expensive desert. I hate them. Until the recent price increases I prefered convenience cold coffee, but I can't justify paying so much for it. You can literally buy an entire meal for the cost of one modest coffee now. Sorry wifey, but we'll skip Starbucks on our travels.

1 ( +1 / -0 )

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