Starbucks chief unfazed by price hike

Schultz says increase in effect Monday won't drive away business from coffee shops.

SEATTLE (Reuters) - Starbucks Corp. Chairman Howard Schultz said Friday higher prices will not drive customers away from the coffee shop chain's signature cappuccinos and lattes.

"I don't think it's going to have any negative impact," Schultz said during an interview at Starbucks' Seattle headquarters.

Starbucks will raise drink prices at company-owned stores in North America by an average of 11 cents beginning Oct. 6.

The chain, which has nearly 6,000 stores in the United States, last raised prices in August 2000. Since then, however, the company that transformed coffee from a 50-cent daily staple into a $3 treat has let its prices slip below those of some of its competitors.

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