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Inside Starbucks' Plan to Raise Its Minimum Wage

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Starbucks  (SBUX) - Get Starbucks Corporation Report has plans to increase the minimum wage for its U.S. baristas to $15 by the summer of 2022 and again to $17 sometime during the summer. The move comes as many businesses, especially retail and restaurants are facing a labor shortage preventing companies from meeting increasing demand.

Starbucks also plans to offer $200 referral bonuses and add recruiters nationwide. The coffee chain last raised wages in December 2021 and the current base pay is $12 - $14.

Starbucks is further sweetening the deal with incentives for loyal employees with raises of 5% for those with two or more years of service and up to 10% for employees partners with five or more years of service.

While the federal minimum wage remains at $7.25 per hour, several major food and retail companies have increased wages including, Target ($15), Costco ($16), Ben & Jerry’s ($18.13), McDonald’s ($13) and Chipotle ($15) 

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