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Home » Starbucks accused of ‘surveillance pricing’ as cost of coffee varies across NYC stores: ‘Loyalty rewarded with price gouging’
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Starbucks accused of ‘surveillance pricing’ as cost of coffee varies across NYC stores: ‘Loyalty rewarded with price gouging’

staffstaffNovember 5, 20266 ViewsNo Comments
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Starbucks accused of ‘surveillance pricing’ as cost of coffee varies across NYC stores: ‘Loyalty rewarded with price gouging’

The caffeine kingpin has coffee drinkers up in arms.

It’s 7 a.m. in Manhattan and you head into your local Starbucks for a quick cup of Joe, forking over $3.97. But that same java jolt may be cheaper at a location just a couple of miles away. 

In the age of price discrimination, where massive companies like Walmart and DoorDash have been accused of nickel-and-diming customers based on data or geography — transparency is crucial. 

The 55-year-old coffee company may be the next chain brewing up a bitter taste in its customers’ mouths. In its latest earnings call, the Seattle-based coffee giant told investors that it will be piloting new tech — including AI.

Starbucks is charging different prices across the five boroughs J.C. Rice for NY Post

CEO Brian Niccol said it will be testing AI that will help baristas with drive-through orders using a system that can “recognize participating customers as they arrive, present personalized digital menus and make payment more effortless.”

Though it’s unclear how that will work, as it’s still in the early stages of development.

To the surprise of no one, once-loyal consumers heard — and hate — the idea. The coffee behemoth got a trove of tweets where customers threatened to boycott if the new tech was implemented.

“If they do this, I will NEVER step foot in a Starbucks again. You WILL NOT PRICE YOUR PRODUCT based on my demography,” one user wrote on X.

Another user added, “Calling it a personalized menu is just corporate speak for surveillance pricing. The second Starbucks scans your face to map your morning habit, your loyalty gets rewarded with price [gouging].”

While the controversial tech has not been implemented in stores just yet, cappuccino consumers are already spotting price differences.


A screenshot of a mobile food ordering app showing an order review screen with an unusually high payment amount of $483.01 next to a subtotal of $7.45 and a total of $8.11.
The Peppermint Mocha in Manhattan’s Soho area is over $1 more than in Staten Island

The post did a deep dive across the five boroughs — where even the cost of a black coffee differs. Staten Island is the cheapest at $3.21, and multiple parts of Manhattan — like Soho and the UES — are the highest at $3.97.

And, with the caffeine kingpin excitedly rolling out its latest winter menu today — where fans can slurp up seasonal bevvies like the Sugar Cookie Latte or the classic Peppermint Mocha — you may want to check your receipt.

For a Peppermint Mocha in Soho, you’ll be shelling out $8.11, while others in Staten Island will be handing over $7.02. That’s a full dollar more just for being in the city.

Meanwhile, those in the Bronx, Queens and Brooklyn will be paying $7.57. 

Even pop icon Harry Styles gave his two cents on coffee prices at a recent concert, telling the hyped crowd, “It is a cappuccino. It can’t be $10.” Though the singer was not directly calling out Starbucks, the sentiment was felt.

The company told The Post that because of NYC’s size and scale, prices will vary as business costs may be higher in some boroughs than others.

“Like many other goods and services, our prices reflect a range of factors, including the cost of doing business in different locations,” a spokesperson for Starbucks told The Post. “So, prices can vary between two states, between a big city and a suburb, or even between New York’s five boroughs. We know our customers have choices, and our focus is on making sure every Starbucks experience feels worth it.”

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