Starbucks Is Latest Brand To Join Movement To Raise Minimum Wage

Amid widespread labor shortages, Starbucks announced on Wednesday that it will raise the average pay for all of its U.S. workers to nearly $17 per hour by the summer of 2022 — with barista hourly rates ranging from $15 to $23 per hour based on market and tenure.

In December 2020, CEO Kevin Johnson promised to make these pay increases within “the next two to three years,” and now, the brand says its funding will result in roughly $1 billion in incremental investments in annual wages and benefits over the last two years.

“As Starbucks celebrates our 50th anniversary we are reminded that our heritage is based on the simple concept that our green apron partners are the heartbeat of Starbucks and that success is best when it’s shared,” Johnson said in a statement. “Today, we are announcing another historic investment in our partners, knowing that when we take care of our partners, they take care of our customers, and all stakeholders benefit."

Starbucks is not the first to raise wages during the historic labor shortage. In May, Chipotle announced that it was raising its minimum wage to $15 up from its former baseline of $13. McDonald’s, too, promised to reach an average minimum wage of $15 per hour at all of its corporate-owned restaurants by 2024.

According to QSR Magazine, Starbucks is also adding recruiting specialists across the country and extending its $200 referral bonus. The brand is also testing a “shifts app” that would give employees more opportunities to work at times that suit their lifestyle.