Seattle-based coffee chain is reportedly set to raise barista wages and increase its minimum wage to $12 in US stores from October 2021
Starbucks to increase wages across US stores | Photo credit: Starbucks
Starbucks is raising hourly worker wages to at least $12 in all US stores from October 2021, and up to or above $15 in some markets.
Employees hired before July 2021 will receive a 5% pay rise, with tenured partners securing an additional 6%.
The coffee giant previously gave US-based employees wage increases in December 2020, with an increase of at least 10% for all baristas, supervisors, and café attendants, according to a Business Insider report.
Staff shortages in the hospitality industry are becoming increasingly problematic for operators re-opening following Covid-19 restrictions. A growing number of hospitality professionals are considering alternative careers in the face of poor career development perceptions, low pay and fear of contracting Covid-19.
“There’s a tremendous amount of skill that goes into being a barista and a lengthy training process. In order for us to open our cafés with the same quality standards, we had to really scramble to hire people. It’s a very competitive landscape for bringing people back financially. We’re certainly seeing more turnover than before the pandemic, and it’s been much harder to land people.”
Starbucks' latest wage increase puts it well above the US federal minimum wage, which is currently at $7.25 per hour.
It comes as other major US food and beverage chains are raising wages to become more attractive to hospitality staff.
In May 2021, fast-food chain Chipotle announced it would increase hourly wages, bringing average pay up to $15 an hour. The same month, McDonald’s also raised minimum wage for entry level staff to $11-$17 per hour.