Starbucks is raising its prices to consumers, blaming the rising costs of supplies. But Starbucks is so profitable it could easily absorb these costs (it just reported a 31 percent increase in yearly profits). Why didn’t it just swallow the cost increases?

This comment was posted to reddit on Feb 23, 2022 at 2:10 pm and was deleted within 5 hour(s) and 59 minutes.

If you want an actual answer to the question its largely for a couple of reasons:

Most companies operate on cyclical contacts with suppliers. Many of these contracts included pricing that, in the current market conditions, are favorable. As time passes this year and into next, many of these contracts will be re-upped and their pricing will be increased to reflect market conditions. So the profit margin will decrease over time as supply pricing lag decreases.
Starbucks is a publicly traded company and has a legal obligation to return value to shareholders.

You can be upset about that second point, but the first point is just BAU.

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