Starbucks coffee decided to raise prices on many of its drinks Tuesday, just one day after deciding to increase wages for all its employees nationally.
The famous chain of coffee shops has already increased prices by 10 to 30 cents for most drinks. The company notes that it made the decision while trying to balance customer value and increased operating costs. It has made similar decisions in July the past two years but this time it comes within a day of deciding to raise wages for all employees, MarketWatch first reported.
Starbucks announced Monday that it will increase wages for all employees nationally by five percent or greater by Oct. 3 “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,” Starbucks detailed in a press release. “[We] believe that our approach to value properly balances the experience we provide customers with our need to effectively run our business.”
Starbucks is not alone with several prominent service and retail companies increasing wages for their employees. Walmart, McDonald‘s, Gap, Target, and TJ Maxx, for instance, decided to raise their own minimum wage in 2015. Gravity Payments President Dan Price famously raised his own internal minimum wage to $70,000 only to be faced with financial difficultly later on.
Critics often argue that raising the minimum wage will result in less employment opportunities and reduced hours. The increased cost of labor is often too much for businesses to handle. Supporters counter that job loss is limited at best and the economic benefits of less people living in poverty outweigh any possible negative outcomes.
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