Last year, the National Labor Relations Board (NLRB) ruled that Starbucks had violated federal labor laws, with former CEO Howard Schultz allegedly implying threats to union-supporting employees during an April 2022 meeting in Long Beach, CA.
The NLRB’s decision follows a series of labor disputes at Starbucks, where many employees have sought to unionize amid allegations of unfair labor practices by the company.
This year as well, Starbucks faced lawsuits from the NLRB, which argues that temporary injunctions are necessary to protect workers wrongfully terminated in violation of labor laws. However, Starbucks maintains that it shouldn’t be required to rehire employees who violated workplace policies. The Supreme Court recently ruled in Starbucks’ favor, limiting the power of judges to protect fired union organizers.
The coffee giant’s power is still formidable. But as labor rights and costs rise in chains like Starbucks, we’re left wondering: Is your coffee habit worth the price tag?
The Reality Behind Your $5 Latte
At Starbucks, the average cost of a latte hovers around $5. This price includes labor, rent, and the quality control expected of the brand, but it also reflects growing internal challenges. With unionization talks and legal battles over labor rights, corporate expenses increase and trickle down to the menu prices. But it’s possible to make great coffee for a fraction of this cost—potentially as low as 20 cents per cup.
Regardless of whether you are on a budget, making it at home is a smart alternative. Here’s the math:
Beans: A 12-ounce bag of good-quality coffee beans, costing around $10, provides about 24 cups. That’s approximately 42 cents per cup.
Water, Milk, and Sugar: Using tap water, inexpensive milk, and sugar amounts to about 8-10 cents per cup, depending on the region.
Total Cost per Cup: With just beans, water, and milk, a homemade cup of coffee costs about 50 cents on the high end. For those who buy in bulk or find deals, it’s not hard to drop this price down even further.
Compare that to the daily $5 Starbucks latte, and you could save around $120-$135 a month by switching to homemade coffee.
Centimillionaire shark tank investor Kevin O’Leary is a great example. Despite his $400 million net worth, he says that he spends $0.18 on homemade coffee every day and invests the rest (of the $5 it would cost for Starbucks).
Ethical Concerns
Labor struggles are key aspect of Starbucks’ pricing. With employees facing significant obstacles around wages and union rights, Starbucks’ recent victory in court signals both setbacks and ongoing costs. Consumers might (understandably) feel conflicted about supporting a company with a mixed record on worker rights, especially when they have budget-friendly options available.
A shift to homemade coffee doesn’t mean sacrificing taste or convenience. Many affordable coffee makers produce high-quality brews, and some compact espresso machines now allow people to make lattes at home. For those committed to their coffee rituals, switching to DIY could free up hundreds of dollars a year, leaving more room for financial goals, from debt repayment to savings.
Here, you can grab the Nespresso Vertuo Next Coffee and Espresso Machine by De’Longhi for the cost of a month’s worth of Starbucks coffee:
And guess what, it won’t expire in a month!
Conclusion
Starbucks’ recent legal win and labor history provide plenty of food for thought. For those watching both their budgets and values, making coffee at home could be a way to take control—both financially and ethically. A morning coffee ritual can still bring joy without breaking the bank or compromising on principles.
