Why Starbucks prices can differ by location, even when they're just a block apart | Daily Hive

With the prices of nearly everything going up, many people in Vancouver are looking for ways to save a few extra cents on their everyday purchases. For many, one of these daily purchases is a coffee and baked good from Starbucks. However, did you know that you can save anywhere from $0.30 to $0.50, depending on which location you go to, and some of them are just a block away from each other?

We first noticed the price difference when comparing a recent purchase made in Langley to an identical one in Vancouver: a grande iced caramel macchiato with oat milk.

In Langley, you can snag an iced caramel macchiato for $5.65 (and don’t forget that Starbucks no longer charges extra for its non-dairy options). However, when reordering the same drink in Yaletown, the price increases to $6.25. For those not skilled in the numbers department, that’s a $0.60 difference.

While both stores are located within Metro Vancouver, they are nearly 50 km apart, so maybe it isn’t the most fair comparison. But it got us curious, are there any price differences between locations in Vancouver proper? Turns out, there is.

For the most part, an iced caramel macchiato from Starbucks will run you about $6.25 pretty consistently throughout the city. But there were some exceptions. Namely, the two Starbucks on Granville Street, which are located nearly across from each other.

If you’ve walked down Granville, you’re most likely familiar with the Starbucks at 720 Granville St. Much like the other Vancouver locations, an iced caramel macchiato will cost you $6.25 here.

But, transit-savvy Vancouverites will know that, on the way to Vancouver City Centre station, there’s a Starbucks right before you tap into the station. If you head to this one, which is just a block away (a three-minute walk, according to Google Maps), you’ll be able to get the same iced caramel macchiato for $5.95. While a $0.30 difference might not be worth the trek for some, that can quickly add up. After 20 iced caramel macchiatos, you would save enough money to purchase another one at the lower price point, as opposed to buying it from 720 Granville St.

Other discrepancies between these two stores include their coffee Frappuccino ($0.30 difference) and their cappuccino ($0.20 difference). Interestingly enough, a caffè latte is actually $0.20 cheaper at 720 Granville St. ($5.25) than the one in Vancouver City Centre station ($5.45).

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However, it’s important to note that the prices for other items, like the sausage, cheddar, and egg sandwich ($5.45), butter croissant ($3.75), and a grande medium roast coffee ($2.95), remained the same at both locations.

So, why the price difference? Dished reached out to a representative of Starbucks to learn more.

“In short, beverage and food prices do vary by location and market,” confirmed the representative. “There are many factors that contribute to pricing decisions, including various operating and occupancy expenses such as rent, labour, local mandates and regulations, competition, distribution, marketing, and commodities — including coffee — but also other commodities associated with beverages, food, materials, and operations.”

Another comparison we asked about during our inquiry was the Starbucks in the Hyatt Regency Vancouver Lobby and the one located at 655 Burrard St., also a three-minute walk apart. At the Hyatt Regency Hotel, an iced caramel macchiato costs $6.45, while the Bentall 4 location at 1055 Dunsmuir St. costs $5.85.

Starbucks was able to clarify that some locations, like the one in the Hyatt Regency Hotel, are licensed stores.

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“These are Starbucks stores that provide the Starbucks Experience and are managed by a licensee, which includes setting prices, service fees, and collecting and distributing taxes,” explained the representative. “Starbucks share the applicable list of product prices at its company-operated stores with the licensee to assist in its pricing decision. Any final decisions regarding pricing are at the discretion of the licensee.”

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So what does this all mean? Well, if you’re counting your pennies and treating yourself to a latte, maybe use the Starbucks app to check nearby stores for a deal.

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