Starbucks Employees Are Getting A Raise, And So Are Your Drink Prices

Starbucks just announced a pay increase for all managers and employees, which they call partners. In a press release, the company announced that starting October 3, all Starbucks partners and store managers in company operated U.S stores will receive a pay increase of at least 5 percent.

On top of the wage increase, Starbucks also added that in the future they will be doubling the stock awards for partners who have worked with Starbucks for at least two years. Between the two, employees will have an increased yearly compensation of 5 to 15 percent.

This announcement comes as Starbucks is facing criticism from partners for cutting hours. A partner started a petition complaining about the lack of hours, saying it was effecting morale. It has gained almost 13,000 signatures in 19 days. CEO Howard Schultz addressed the issues with scheduling in the press release.

“Please know that you have my personal commitment that we will work with every partner to ensure you have the hours you need,” Schultz said.

The company also will be adjusting their health benefits program to allow more flexibility and savings for employees. In terms of morale, Starbucks said they will be relaxing their dress code, although it didn’t name specifics, saying that the announcement would come at the Partner Open Forum in July.

The wage increase wasn’t without other adjustments.

Starting June 12, the coffee giant also increased its prices. The prices increased as much a 30 cents on many popular drinks. Select sizes of brewed coffee will face an increase of 10 to 20 cents, and 10 to 30 cents increase on espresso beverages and tea lattes. Prices on 65 percent of its menu have not changed.

In a press release Starbucks named business needs as the reason for the increase.

“Pricing is continually evaluated on a product-by-product and market-by-market basis in our stores in order to balance business needs while continuing to provide value to our loyal customers,” the company said.

The price increase had to be announced early after a computer glitch accidentally charged some customers the increase early.

The company has increased prices in the past. This will be the third time in three years, and sales have still risen consistently so the price increase is not expected to raise any uproar. Although it might make some people think twice about ordering those secret menu items.