Jul 23, 2007 11:52 pm US/Eastern
Milk, Dairy Prices Affecting Food & Coffee Shops
BOSTON (WBZ) ―
You may find that getting a slice of pizza, or buying a cup of coffee could be costing you a bit more these days. That's because the price of dairy products are on the rise.
Starbucks just announced they would be increasing their prices by 9 cents this month -- not only because of dairy prices, but energy and fuel prices as well. The last time the coffee chain announced an increase in prices was on October 3, 2006 when they bumped up prices by 5 cents.
The chain says customers will not see an increase in bottled drinks or food items -- just freshly made drinks.
And Starbucks is not alone. Many other restaurants and chains are starting to feel the pinch from higher dairy prices.
The Boston Globe reported seeing signs posted in Stop & Shop Supermarkets that warned customers that the cost milk and dairy products will be noticeably higher for the foreseeable future.
Little Pizza King in Brighton said they have seen the price of cheese go up about 89 cents to $1 a pound. They say the restaurant has not raised their menu prices in four years and are going to hold out as long as they can. "In the past month and a half, it's increased by 35-40 percent, and we were warned today that it will continue going up," said Little Pizza King shop owner Ted Tsaousidis.
The demand on corn to make ethanol is also partly to blame for this increase, because it is driving up feed costs for farmers.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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