News Forum - Starbucks steams up with price hike, now costlier than Thailand’s minimum wage

[Thaiger]

Starbucks, one of Thailand’s most popular coffee chains, announced that the prices of its beverages will be increased by 5 baht at all of its stores across the country from today. One cup of coffee from Starbucks is now more expensive than Thailand’s national minimum wage. The corporation says the reason for the price hike … …

The story Starbucks steams up with price hike, now costlier than Thailand’s minimum wage as seen on Thaiger News.

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[BJoe]

Still a little confused as to the reason or factors forcing this increase for beverages. The factors hinted seem to indicate that the sluggish economy generates less customers but the cost of operation remains fixed…. thus leading to lower profits. To maintain the target profit margin, prices need to increase. 

[Ellenroc]

So that is good, is it? A brand of coffee is out or reach for the backbone of the country because the wages are a disgrace. The top man wants to maintain his margins but the poor man can't afford a coffee, is the fair?  Perhaps, with his clout he can start a movement to see that everyone gets a minimum wage of 1000baht a day.  Start it now and let's see a levelling up.

[Vigo]

1 hour ago, Ellenroc said:

So that is good, is it? A brand of coffee is out or reach for the backbone of the country because the wages are a disgrace. The top man wants to maintain his margins but the poor man can't afford a coffee, is the fair?  Perhaps, with his clout he can start a movement to see that everyone gets a minimum wage of 1000baht a day.  Start it now and let's see a levelling up.

Starbucks  coffee itself isn't priced that much higher than locally available coffee. On Shopee I can get  200g   for 330 baht  (incl. shipping).   At Lotus I can get my basic Boncafe 250g for 300 baht. The Starbucks blends are more to my taste.  My bag of espresso decaf 453 g, or 1lb. is 945 baht. The coffee is not decaffeinated by chemicals. I cannot find Boncafe decaf.

The cost of the  Starbucks coffee at the shop  includes a place to sit and access to free wifi. Bricks and mortar outlets are expensive to maintain.

The quality of Starbucks products are top quality compared to the Thai competitors. The pastries served are significantly better than what I can find locally, even at the pastry shops.  Other than at Starbuck's, it is next to impossible to find a proper cinnamon brioche or apple turnover in Thailand. It's always pineapple or sausage or corn in sticky trans fat infused pastry.

Starbucks and the other coffee chains are not interested in the minimum wage worker consumer  demographic. That is who Nescafe instant is for. They cannot compete on price unless they cut quality. Starbucks coffee is certified as ethically sourced. Its barista compensation package is no worse than local chains, if not better and Starbucks pays more than minimum wage.

You want everyone to earn a minimum wage of 1000 baht. Good. Now you pay for it, because most Thais and foreigners won't want to. If you don't like the CEO and the compensation package, feel free to start your own coffee chain and compensate as you wish. No one forces you or anyone else to use Starbucks products. It's a free market when it comes to coffee retailers.

[23RD]

I've boycotted Starbucks for many years now due to their support for left wing causes like BLM Alphabet Folk Defund The Police and DEI saying that there coffee is minging anyway prefer Cafe Amazon and the local coffee shops here in Pattaya you get a better brew.

[McTavish]

2 hours ago, Ellenroc said:

So that is good, is it? A brand of coffee is out or reach for the backbone of the country because the wages are a disgrace. The top man wants to maintain his margins but the poor man can't afford a coffee, is the fair?  Perhaps, with his clout he can start a movement to see that everyone gets a minimum wage of 1000baht a day.  Start it now and let's see a levelling up.

So, overpriced American dishwatery beverages some think of as coffee are out of the average Thai's price range? Haha bloody ha.  Ain't they lucky there's a quality product available from Amazon and about 45000 other outlets from as little as 40 baht.

As for wages, very few are paid the current minimum, in fact its the benchmark for 'extras' in the labour market, ie: wives, girlfriends or other unskilled family members who assist a primary wage earner.  Quite common in the building and agricultural sectors. 

Get a cup of Amazon coffee in you and wake up to some home truths.

[rkhguy]

I sometimes buy something at Starbucks so I can find a place to sit and rest my weary bones.  

Starbucks is good for that, you can sit on real furniture and take time to relax.

 

 

[Marc26]

10 hours ago, Vigo said:

Starbucks  coffee itself isn't priced that much higher than locally available coffee. On Shopee I can get  200g   for 330 baht  (incl. shipping).   At Lotus I can get my basic Boncafe 250g for 300 baht. The Starbucks blends are more to my taste.  My bag of espresso decaf 453 g, or 1lb. is 945 baht. The coffee is not decaffeinated by chemicals. I cannot find Boncafe decaf.

The cost of the  Starbucks coffee at the shop  includes a place to sit and access to free wifi. Bricks and mortar outlets are expensive to maintain.

The quality of Starbucks products are top quality compared to the Thai competitors. The pastries served are significantly better than what I can find locally, even at the pastry shops.  Other than at Starbuck's, it is next to impossible to find a proper cinnamon brioche or apple turnover in Thailand. It's always pineapple or sausage or corn in sticky trans fat infused pastry.

Starbucks and the other coffee chains are not interested in the minimum wage worker consumer  demographic. That is who Nescafe instant is for. They cannot compete on price unless they cut quality. Starbucks coffee is certified as ethically sourced. Its barista compensation package is no worse than local chains, if not better and Starbucks pays more than minimum wage.

You want everyone to earn a minimum wage of 1000 baht. Good. Now you pay for it, because most Thais and foreigners won't want to. If you don't like the CEO and the compensation package, feel free to start your own coffee chain and compensate as you wish. No one forces you or anyone else to use Starbucks products. It's a free market when it comes to coffee retailers.

I'm not a coffee drinker but frigging LOVE cake! 

 

I think there is a lot of good coffee shops that sell great desserts all over Thailand these days

Even in the most local Thai places 

[garyknrd]

Tried Starbucks in Thailand.  One time was enough. That is some strong coffee.. 

 

Edited January 5 by garyknrd

[TedG]

Starbucks does not cater to the minimum wage worker. 

[Vigo]

20 hours ago, McTavish said:

So, overpriced American dishwatery beverages some think of as coffee are out of the average Thai's price range? Haha bloody ha.  Ain't they lucky there's a quality product available from Amazon and about 45000 other outlets from as little as 40 baht.

As for wages, very few are paid the current minimum, in fact its the benchmark for 'extras' in the labour market, ie: wives, girlfriends or other unskilled family members who assist a primary wage earner.  Quite common in the building and agricultural sectors. 

Get a cup of Amazon coffee in you and wake up to some home truths.

Depends on the type of coffee bean you order. My espresso beans are strong. There is a cost to quality. Starbucks ethically sources its coffee beans. Do retailers like Amazon do that? I do not think so. Amazon is a subsidiary of PTT and was intended to provide inhouse coffee shop stops at their service stations. It is gas station coffee. Does Amazon use chemicals or the water decaffeination process? A cynic would suggest that with PTT's  inventory of  chemicals, it could find some for the process. 

Amazon works for some people. So does  buying Leo and drinking it on the steps of the 7-11. I don't use Starbuck outlets and brew at home as I  make my coffee super strong and Starbucks can be very busy.

In respect to the  pastry selections, yes Bangkok has some nice  pastry shops. Unfortunately, the other  cities do not. I have tried so many and it's always the same overly sweet or too oily options. Palm oil is king in Thailand, and so are trans fats. 

[Pinetree]

Never go to Starbucks, shit coffee and expensive.  My local coffee shop, serving Thai grown coffee, is 60 Baht per large mug or Latte, and its airconned and comfortable seating. Starbucks is close to  a scam here. Maybe its a Bangkok thing, where people have little choice but to pay high prices for a simple drink. 

[Khunmark]

I question the price of a coffee at being well in excess of 316 baht. No one in their right mind would pay that much for a cup of coffee. At that price, I look forward to seeing them go tits up in the coming months. So long Starbucks, you won’t be missed by me or other coffee lovers of Thailand.

[Viggen840]

2 hours ago, Vigo said:

So does  buying Leo and drinking it on the steps of the 7-11.

You have a thing against Leo? Heineken drinker, are you - if beer at all?

[McTavish]

2 hours ago, Vigo said:

Depends on the type of coffee bean you order. My espresso beans are strong. There is a cost to quality. Starbucks ethically sources its coffee beans. Do retailers like Amazon do that? I do not think so. Amazon is a subsidiary of PTT and was intended to provide inhouse coffee shop stops at their service stations. It is gas station coffee. Does Amazon use chemicals or the water decaffeination process? A cynic would suggest that with PTT's  inventory of  chemicals, it could find some for the process. 

Amazon works for some people. So does  buying Leo and drinking it on the steps of the 7-11. I don't use Starbuck outlets and brew at home as I  make my coffee super strong and Starbucks can be very busy.

Amazon use only Thailand sourced beans so that puts them ahead of Starbucks IMHO.   Anyway, I only used them as an example of outlets OTHER than SB.

Its where we buy coffee when on the road as we also brew at home using local dark roasted beans.  Mrs Mac was a trained barista purely because she loves everything about coffee and we both enjoy strong black coffee.

[Vigo]

1 hour ago, Khunmark said:

I question the price of a coffee at being well in excess of 316 baht. No one in their right mind would pay that much for a cup of coffee. At that price, I look forward to seeing them go tits up in the coming months. So long Starbucks, you won’t be missed by me or other coffee lovers of Thailand.

It seems that millions of people have been out of their minds and buying Starbucks products such that the company had a year on year growth in sales of 11.55%  for 2023. With Net Income up almost 26% and its net margin growth at 11.47%, I doubt the company is going under anytime soon. Nor do you represent the coffee lovers of Thailand because the company has been growing since it first arrived in 1998. Now Starbucks Thailand has its Reserve outlets which are preferred by Thailand's young professional and beautiful demographic.  The company must be doing something right. It is an American success story offering the strongest and best of American values despite being boycotted by extreme right groups in the USA and now the leftists Hamas sympathizers in the west

 

Coffee is a personal taste thing for many people.  When I was a kid, I would marvel at the big Bunn Coffee  drip machines at the local diners. The coffee was horribly weak, but the aroma was seductive. People will pay for perceived value and quality. The people who describe Starbucks coffee as shit or dishwater have obviously not tried some of the more robust beans on offer.I too find  some of the beans bland, but there are many other beans available and like a fine wine, it is a question of selection . Starbucks competitors in Thailand do not invest in R&D as does Starbucks and it costs money to do that.  https://www.businessinsider.com/starbucks-coffee-testing-room-tour-photos-2022-9

Anyway, this story will be forgotten within the day.

 

[Vigo]

54 minutes ago, Viggen840 said:

You have a thin g against Leo? Heineken drinker, are you - if beer at all?

I don't have anything against Leo. I just do not like it. Same brewer as Singha, Carlsburg , Corona in Thailand. In respect to beer I cut back some time ago. Empty calories etc. I do like a Pilsner when available. 

[Khunmark]

34 minutes ago, Vigo said:

It seems that millions of people have been out of their minds and buying Starbucks products such that the company had a year on year growth in sales of 11.55%  for 2023. With Net Income up almost 26% and its net margin growth at 11.47%, I doubt the company is going under anytime soon. Nor do you represent the coffee lovers of Thailand because the company has been growing since it first arrived in 1998. Now Starbucks Thailand has its Reserve outlets which are preferred by Thailand's young professional and beautiful demographic.  The company must be doing something right. It is an American success story offering the strongest and best of American values despite being boycotted by extreme right groups in the USA and now the leftists Hamas sympathizers in the west

Coffee is a personal taste thing for many people.  When I was a kid, I would marvel at the big Bunn Coffee  drip machines at the local diners. The coffee was horribly weak, but the aroma was seductive. People will pay for perceived value and quality. The people who describe Starbucks coffee as shit or dishwater have obviously not tried some of the more robust beans on offer.I too find  some of the beans bland, but there are many other beans available and like a fine wine, it is a question of selection . Starbucks competitors in Thailand do not invest in R&D as does Starbucks and it costs money to do that.  https://www.businessinsider.com/starbucks-coffee-testing-room-tour-photos-2022-9

Anyway, this story will be forgotten within the day.

You forgot the ignorance factor. There are a multitude of great owner/operator cafes in Thailand where you can get ten coffees for the price you pay for one in Starbucks. Call me old fashioned but I’d much rather my money going to the little bloke down the road, where the money is returned to the local community, than to line the pockets of a multi national corporation.
 

The Starbucks set wouldn’t know the difference between a good coffee and a cup of camel’s piss as they are prey to a slick marketing campaign. And granted there is a premium to be paid for the consumption free trade coffee, it’s impossible to justify the ridiculous mark up Starbucks commands. And as to your comments about the cakes, you need to get out more.

[genobkk]

On 1/5/2024 at 2:20 PM, McTavish said:

So, overpriced American dishwatery beverages some think of as coffee are out of the average Thai's price range? Haha bloody ha.  Ain't they lucky there's a quality product available from Amazon and about 45000 other outlets from as little as 40 baht.

As for wages, very few are paid the current minimum, in fact its the benchmark for 'extras' in the labour market, ie: wives, girlfriends or other unskilled family members who assist a primary wage earner.  Quite common in the building and agricultural sectors. 

Get a cup of Amazon coffee in you and wake up to some home truths.

Try finding a toilet at most stand alone cafe Amazon’s   If you are lucky and have a decent one near you then it’s fine but the branches vary so much, how they manage not to have toilets is beyond me   Funny to see the Starbucks hate but people spend literally tens of Thousands of THB drinking.    Do what you enjoy, let others do the same 

Edited January 6 by Bkkscared

[Boonmee]

Can't believe anyone still buys that nasty Starbucks crap.  There's one of those places in the Robinson Mall and if there's more than two customers inside, Amazon must have shut down!  

[Pinetree]

1 hour ago, Vigo said:

It seems that millions of people have been out of their minds and buying Starbucks products such that the company had a year on year growth in sales of 11.55%  for 2023. With Net Income up almost 26% and its net margin growth at 11.47%, I doubt the company is going under anytime soon. Nor do you represent the coffee lovers of Thailand because the company has been growing since it first arrived in 1998. Now Starbucks Thailand has its Reserve outlets which are preferred by Thailand's young professional and beautiful demographic.  The company must be doing something right. It is an American success story offering the strongest and best of American values

None of that is even near to correct. It's a lazy persons outlet, or one where choice and time is limited.  Grab a shit coffee on the way to work in a big city.  Most coffee drunk in Thailand is without a doubt, at home, in local shopping centers , or in the thousands of local, small coffee shops that have sprung up all over the country in recent years. There are no SBs outside tourist areas/attractions and big Cities, not a one.   SB financial figures are manipulated, untrue and based on various tax avoidance scams throughout the World. 

[Boonmee]

4 minutes ago, Pinetree said:

There are no SBs outside tourist areas/attractions and big Cities, not a one. 

Bullshit.
I just posted where the local Robinson Mall has a rather large Starbucks Restaurant and this is in what's referred to as the "Ban Nok"  

[Pinetree]

1 hour ago, Boonmee said:

Bullshit.
I just posted where the local Robinson Mall has a rather large Starbucks Restaurant and this is in what's referred to as the "Ban Nok"  

and where is that, you don't say where. 

[Vigo]

As a reminder, Starbucks in Thailand is  a licensed operation. The operator is a JV between  Thai Beverage (makers of  Chang, operators of multiple chain restaurants such as Oishi and Shabushi and a dozen others plus the oishi foodline) and Maxims of Hong Kong.  ThaiBev knows locations and its target demographics. Outlets will be located where there is sufficient traffic to support the branch. Korat isn't much of a happening place, but there is a  branch at Outlet Village which is the customer magnet. Typically, Starbucks is associated with a shopping  complex such as Market Village or Central   https://www.starbucks.co.th/find-a-store/  There are 465+ branches in Thailand. 

 

[Thommo]

On 1/5/2024 at 5:10 PM, Vigo said:

Starbucks  coffee itself isn't priced that much higher than locally available coffee. On Shopee I can get  200g   for 330 baht  (incl. shipping).   At Lotus I can get my basic Boncafe 250g for 300 baht. The Starbucks blends are more to my taste.  My bag of espresso decaf 453 g, or 1lb. is 945 baht. The coffee is not decaffeinated by chemicals. I cannot find Boncafe decaf.

The cost of the  Starbucks coffee at the shop  includes a place to sit and access to free wifi. Bricks and mortar outlets are expensive to maintain.

The quality of Starbucks products are top quality compared to the Thai competitors. The pastries served are significantly better than what I can find locally, even at the pastry shops.  Other than at Starbuck's, it is next to impossible to find a proper cinnamon brioche or apple turnover in Thailand. It's always pineapple or sausage or corn in sticky trans fat infused pastry.

Starbucks and the other coffee chains are not interested in the minimum wage worker consumer  demographic. That is who Nescafe instant is for. They cannot compete on price unless they cut quality. Starbucks coffee is certified as ethically sourced. Its barista compensation package is no worse than local chains, if not better and Starbucks pays more than minimum wage.

You want everyone to earn a minimum wage of 1000 baht. Good. Now you pay for it, because most Thais and foreigners won't want to. If you don't like the CEO and the compensation package, feel free to start your own coffee chain and compensate as you wish. No one forces you or anyone else to use Starbucks products. It's a free market when it comes to coffee retailers.

Sounds like a shareholder.