Posted 4/3/2024, 3:45:00 PM
Starbucks Hikes Prices to Offset California Minimum Wage, Risking Loss of Loyal Customers
- Starbucks raised prices at California stores by $0.50-$1 per item to offset higher labor costs from new $15 minimum wage law
- If a customer orders a $3 drink 5 days a week, price hike of $0.80 per drink totals over $200 more per year
- Price increases upset customers who visit regularly but may stop due to extra costs
- Also upsets baristas who have to explain higher prices to angry customers
- Some customers switching to home brewing instead of paying Starbucks' higher menu prices
