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Dunkin' Donuts expects 'modest' coffee price increase

June 23, 2014

Starbucks announced last week that it is increasing the cost of its coffee beginning Tuesday. Fans can expect to pay about 10 to 15 cents more for its Venti and Grande sizes, or 15 to 20 cents more for tall, as well as Venti latte and mocha drinks.

Most increases will be between 5 and 20 cents, according to the company, which also plans to raise its packaged coffee offerings. According to Entrepreneur, the decision comes as Brazil gets hit with a drought, causing coffee bean shortages. Starbucks previously said it would stay the course on pricing, but reversed its position late last week.

Coffee rival Dunkin' Donuts has already warned that prices would likely rise. In an emailed statement to QSRweb.com, Justin Drake, PR manager for Dunkin' Brands, said the increases will be "modest," writing:

Dunkin' Donuts restaurants are independently owned and operated by individual franchisees who are responsible for making their own pricing decisions for their stores. Each year we recommend suggested retail prices for their consideration, which take into account factors such as the costs of product, rent, labor and supplies. We strive to offer our high-quality coffee at a great value to our guests but based on rising commodity costs, we expect to see a modest increase in coffee prices.