Starbucks announces ‘whopping’ raise for all employees effective Jan 1

Starbucks announced on Monday that it will be raising wages for its baristas a whopping 3% percent in 2024 — those with longer service at the company may need to invest in a wheelbarrow, as they will be receiving up to a 5% increase.

“Effective January 1, eligible U.S. retail hourly partners will see an incremental pay increase come to life, with at least a 3% increase and differentiated pay for eligible tenured partners,” said the coffee company that operates 38,000 stores around the world.

Eligible employees with 2-5 years of service will see at least a 4% raise, and those with five or more years will get at least 5%.

Starbucks hailed the wage increase as being “well beyond the industry average,” according to Fox Business. The company also claimed there will be no menu price increases to offset the wage increases.

“Starting with competitive pay — Starbucks provides U.S. hourly retail partners an average wage of nearly $17.50 per hour, a barista wage range between $15 and $24 per hour and a total compensation, with benefits, of approximately $27 per hour,” the company said in a press release.

Sara Trilling, executive vice president and president of Starbucks North America, spoke about “investing” in their employees.

“Investing in our partners is what drives our success,” Trilling said in a statement. “It’s what makes us all partners. And an important way we do this is by investing in our partners’ journey, to bridge to a better future at Starbucks and beyond. This entails engaging with, and listening to, their ideas and feedback while continuing to raise the bar by offering competitive pay and the best benefits package in the industry.”

Starbucks also said it has “invested more than 20% of the profits from fiscal year 2023 back into the partner experience through wage increases, training, and new equipment.”

“These investments have led to a more consistent partner experience in company-operated stores across the U.S. Coupled with higher wages and the expansion of hours, these investments have not only resulted in lower turnover, more meaningful improvement in our customer connection scores year-over-year but have also increased hourly total cash compensation by nearly 50% since Fiscal Year 2020,” the coffee giant added.

Here are a few responses to the story, as seen on X:


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