Business

Starbucks Raises Wages To $ 15 An Hour In 2022

A “We are hiring!” The sign is displayed at Starbucks on August 6, 2021 in Los Angeles, California.

Mario Tama | Getty Images

Starbucks announced on Wednesday that it will raise the wages of baristas in the United States at least twice in 2022, bringing the minimum wage to $ 15 an hour by summer.

The announcement comes at a time when bars and restaurants are struggling to find enough willing employees to staff their canteens as demand rises. Domino’s Pizza, McDonald’s, Chipotle Mexican Grill and owner Popeyes Restaurant Brands International said they faced difficulties in the third quarter, which put pressure on their U.S. sales. Industry experts and economists have pointed to a number of factors that may explain the shortage of workers, including concerns about Covid-19, difficulties with childcare, and a shift to higher-paying jobs like an Amazon warehouse.

Starbucks is also facing efforts to unionize several Starbucks cafes in Buffalo, New York. Employees are eager to form a union to tackle problems, including chronic understaffing.

Starbucks said it would give baristas who have been with the chain for at least two years a 5% boost at the end of January. Employees with at least five years of work experience can receive a salary increase of up to 10%.

The company is planning a second wage hike in the summer of 2022, bringing its average wage to $ 17 an hour. The current average hourly wage is $ 14 per hour. The new minimum wage will be $ 15, while employees in some markets can earn up to $ 23 an hour.

The last time a chain of coffee houses raised wages to its employees was in December. At the time, CEO Kevin Johnson said the company would raise salaries to $ 15 an hour over the next three years. With the announcement on Wednesday, the milestone will be reached earlier than planned.

In addition to the pay increase, Starbucks said it will offer $ 200 referral bonuses and add recruiters across all US markets. The company is also working on innovations to make the barista’s job easier.


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