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

Starbucks is facing criticism over plans to test AI that could recognise loyalty programme customers at drive-throughs and show them personalised menus. Some customers fear the technology could enable prices tailored to individuals, although Starbucks has not announced that it will use it to set prices.

A comparison of New York City stores found that prices already vary by borough: black coffee cost $3.21 in Staten Island and up to $3.97 in parts of Manhattan. A Peppermint Mocha was listed at $8.11 in Soho, $7.02 in Staten Island and $7.57 in the Bronx, Queens and Brooklyn. Starbucks said differences reflect varying local business costs.