Starbucks posted higher sales in the past quarter by raising prices. That higher spending on cups of coffee and pastries compensated for problems the American coffee chain experienced in China, where corona lockdowns hindered sales.
Starbucks achieved sales of 8.2 billion dollars (8.07 billion euros) in the third quarter of its broken fiscal year, almost 9 percent more than a year earlier. Branches that had been open for more than a year in the important North American market mainly had to rely on higher prices for the higher turnover. The number of purchases decreased.
Outside the United States, Canada and Mexico, revenues were 18 percent lower. This was mainly due to strict corona lockdowns in major cities in China, which, for example, caused public life in Shanghai to virtually come to a standstill. As a result, the chain’s coffee shops sold 44 percent less. In June, Starbucks announced it could reopen in Shanghai.
Despite the price increases, Starbucks could not prevent profits from falling more than a fifth lower at 913 million dollars (approximately 899 million euros). Margins were under pressure due to higher purchasing costs and spending on corona measures in China. In addition, the company is paying more in salary to address the high turnover of baristas and other staff in Starbucks stores.
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