In response to California’s $20 minimum wage mandate for fast-food workers, Starbucks has increased prices in its Golden State stores this week. The new law, AB-1228, impacts fast-food establishments with over 60 locations nationwide, including Starbucks, McDonald’s, and Pizza Hut. Items at Starbucks have seen price increases ranging from $0.50 to $1.00. The rising prices are a direct response to the higher minimum wage, according to a spokesperson for the company, although they did not disclose the average item increase.
The menu price increase was implemented to offset higher labor costs, but some loyal customers who visit Starbucks regularly might struggle to afford the additional change. For example, a daily order increase of $0.80 would amount to an additional $208 per year for someone who visits Starbucks every workday. Customers who purchase multiple items or visit more than five times a week will be spending even more each year due to the price increase. This has sparked concern and dissatisfaction among both customers and baristas.
Baristas have expressed frustration with the price increase, with one posting in a subreddit, “As if we don’t get harassed enough. Good luck tomorrow, fellow baristas.” Some customers have also voiced their discontent, with one California Reddit user stating, “It’s so ridiculous, and I am slowly turning to my Nespresso machine to make my drink now. Shame on you Starbucks.” Another barista shared their concern about the impact on customers, saying, “Yeah, I legit feel bad telling people the price and I miss some of my regulars who have stopped coming by as often.”
The price increase has been met with mixed reactions, with some customers feeling frustrated and considering alternative options, such as making their drinks at home. The impact of the higher prices on baristas, who have to communicate the changes to customers, is also evident. This situation highlights the challenges faced by both customers and employees in the face of rising labor costs and price increases. It remains to be seen how Starbucks and other affected establishments will navigate these changes and maintain customer loyalty in the future.
