Starbucks baristas get big raises: 5% or more

Starbucks CEO: Minimum wage headed in the right direction
Starbucks CEO: Minimum wage headed in the right direction


In a memo sent to all 157,000 U.S. employees, CEO Howard Schultz announced a wage hike for all store employees and managers as of Oct. 3. Starbucks will also double the company stock awards for employees who've been there two or more years. Altogether, these changes will boost total compensation between 5% to 15% for all workers.


Starbucks employees earn an average of $9.43 an hour, according to, which tracks salaries and surveyed 2,600 of the chain's employees. The average annual wage came to nearly $20,000, including tips, company stock, and other bonuses, according to the website.

The company would only say that its pay range depends on where an employee lives.

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Schultz addressed the issue about hours in his letter, saying "you have my personal commitment that we will work with every partner to ensure you have the hours you need."


And finally to address morale he said the company is loosening its dress code "providing more room for self-expression."

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Schulz told CNN this spring that the moves in many states and cities to raise the minimum wage are "heading in the right direction." Despite a push for a $15 national minimum wage by Democrats and labor groups, Schultz said he believes minimum wage increases are better done at the local level rather than nationally. He said Starbucks has always paid more than minimum wage in every market.

The cost of the raises were not disclosed, but the company had previously said it would spend $275 million in 2015 and 2016 on "digital and partner investments." A significant part of that cost will go to employee wages, said spokesman Corey duBrowa.

He said the company does not expect pushback from shareholders on the cost of the wage hikes. The company has posted record profits in the first two quarters of the current fiscal year. But Starbucks (SBUX) shares are down 6% so far this year.

Starbucks is done throwing away food
Starbucks is done throwing away food

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