Wages not the only thing rising at Starbucks

One day after announcing a general salary increase for all U.S. corporate store employees, Starbucks Corp. is preparing to increase some prices.



As of July 12, Starbucks made what it calls a “small price adjustment” in U.S. company-operated stores. Depending on the market, customers will experience increases of 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on espresso beverages and tea lattes.



In a short news release, the retailer estimated the average customer ticket will increase about 1%. However, 65% of beverage prices have not changed.



“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,” said Starbucks.



The price increases did not come as a complete surprise. Due to a computer error, some customers at U.S. corporate Starbucks stores were prematurely charged higher prices on July 1 and 2. The company fixed the error and acknowledged there would be a small price increase on select beverages starting July 12.



Effective Oct. 3, 2016, Starbucks is giving all employees and managers in U.S. company-operated stores an increase in base pay of 5% or greater. The retailer will also double the annual stock award for some employees Starbucks said the combination of these changes will result in compensation increases between 8%-16%. It has not commented on whether the wage and price hikes are related.