It just seems to make sense that a drink from a chain like Starbucks should cost the same amount no matter where you are when you order it. The menus are the same and the coffee all comes from the same place — so what’s the difference? To understand, you need to realize that you’re paying for much more than just espresso and the Barista’s snazzy signature green apron. While some operational costs are the same for all stores in a megachain like Starbucks — the coffee itself, for instance — other costs vary depending on the location of the individual store.
The cost to hire the best Baristas, or wages, varies from state to state. Taxes are much higher in some states than others. The cost of renting space in a city like New York is simply much higher than renting space in Pittsburgh. Even the price of milk varies greatly depending on where you are. When you pay a few cents or a dollar more for your drink in New York than you would Pittsburgh, you’re really paying for the heightened costs of running a business there.