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.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.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 t...