Magmagan t1_ja5a9nl wrote on February 26, 2023 at 11:10 PM

Reply to comment by k1ngsn0w in The price of a Starbucks Latte, by country by kavithatk

Or, how it seems to be cheaper in other countries, like Brazil, but really isn't. PPP has to be taken into account. You can afford two US lattes at federal minimum wage, but can't even afford one in Brazil.

k1ngsn0w t1_ja5ljiw wrote on February 27, 2023 at 12:32 AM

Honestly I can't speak affirmatively on Brazil but in general I would really expect the prices to be lower in South America as that is generally where the beans come from. Plus, I'm sure the people who live there prefer local coffee as compared to corporare Starbucks.

Magmagan t1_ja5ph89 wrote on February 27, 2023 at 1:02 AM

No, Starbrucks has brand name, so that logic doesn't work. Similar to McD's or BK, they charge way too much for their burgers compared to other chains. And we produce a ton of beef.

Coffee isn't super cheap either and a lot of it is exported... Don't think that your average joe here can justify (or even cares for) arabica coffee at at least double the price of normal robusta. We consume a lot of coffee but we don't have a super refined taste most of the time.

Also, if the price of the latte were closer to the US average then demand would plummet. It's already marketed towards mid/high-mid class and even then it would be hard to justify spending like, 40 reais on just the coffee for two people.

So the price is lowered because PPP is a thing. People need to be able to afford the product. At the same time, people earn far less than the relative price difference would suggest, so the product is still considered a luxury to normal consumers.

k1ngsn0w t1_ja5qyir wrote on February 27, 2023 at 1:13 AM

Not sure where in Brazil you're from but I'm speaking mostly from an overhead cost perspective being that it doesn't require as much overhead to get the beans from x to y. Also, I agree that in the main cities of Brazil, the culture exists where people will pay a premium for American coffee (as sad as that is), but I know plenty of locals of Brazil who prefer their own coffee over Starbucks.

Magmagan t1_ja5tw1x wrote on February 27, 2023 at 1:36 AM

But then why would it be more expensive in Germany, for example? They are one of the largest exporters of coffee in the world.

I get your perspective but I think it's too simple when it comes to starbucks lattes. Operations cost isn't so prevalent if the product is considered a luxury good.