(TheConservativeTimes.org) – Starbucks announced on Monday that it aims to increase the number of stores in the US in response to high demand for its coffees from a younger and more wealthy consumer base. The company plans to increase hourly compensation for its retail staff by at least 3% beginning in 2024.
Last week, the firm announced that it would double the hourly wage of coffee shop employees over the following two years from 2020 levels, as well as boost the number of locations worldwide from 38,000 to 55,000 by 2030.
There are over 17,000 locations in North America, and hourly wages for American employees range from $15 to $24, and benefits totaling close to $27 an hour.
Starbucks reported that on January 1, 2024, hourly wage retail workers will get a raise of at least 3%. In addition, employees with two to five years of service will get a 4% rise, while those having over five years of employment will receive at least a 5% boost.
These efforts, the business claimed in a statement, have not only reduced turnover but also raised total cash compensation per hour by roughly fifty percent since fiscal year 2020 due to greater pay and more hours worked.
Starbucks also announced that the number of required workdays for employees to be eligible for paid vacation will be lowered.
But as reports show, the rate of inflation is at 3.7%. Thus, the minimal rise of 3 percent falls short of keeping up with the living expenses.
As a result of government policies that restricted customer traffic, Starbucks had a 16% drop in sales last year.
In other related news, McDonald’s and Chipotle have declared that they would be increasing their menu pricing in California as a result of the new minimum wage laws approved by Governor Gavin Newsom.
In 2019, certain California fast-food workers will get a minimum wage of $20 per hour thanks to legislation enacted in September.
McDonald’s CEO Chris Kempczinski was reported as saying the measure would affect wages for the California franchisees, implying that menu price rises will naturally follow.
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