Millions of Americans make ends meet every day with low-wage jobs at retail stores and restaurants.
As these businesses are constantly criticized over low pay, one company is stepping up to the plate and has announced it will begin increasing starting pay beginning early next year.
Starbucks announced that beginning in January 2015, the company will increase starting-pay rates for all employees in the U.S.
According to The Seattle Times, Chief Operating Officer Troy Alstead said in an email that all baristas and shift supervisors will also receive a raise, and experienced partners will be eligible for a “lump sum increase” to reward tenure. Additionally, pay will now be reassessed annually.
Starbucks didn’t announce what the new starting-pay rate will be, or how much baristas and shift supervisors can expect to make. However, according to PayScale’s Research Center, baristas at Starbucks typically make between $7.63 and $10.63 per hour, and shift managers take home an average of $9.12 to $13.44. Increasing these wages — both by bumping up starting salaries (notably well above minimum wage in many states) and by giving raises to existing baristas — will help these employees earn a wage that will be well above what is considered “livable” according to MIT, especially if these employees have families.
This announcement follows on the heels of Starbucks expanding its overall benefits to employees in an attempt to both recruit and retain staff. While the company has been widely recognized for offering generous health benefits and other perks to part-time employees that are traditionally only seen in corporate environments, Starbucks has been looking for other ways to further improve its baristas’ lives. One new benefit announced earlier this year by Starbucks is a program to subsidize online college education at Arizona State University for its employees. Approximately 1,000 workers began taking classes earlier this week.
As regions across the country fight to increase the minimum wage to $15 an hour, (or have already done so) Starbucks may be setting a precedent that we don’t need laws to set reasonable standards for employee wages — just reasonable company culture.
Tell Us What You Think
Do you think more restaurants and retail stores should increase their starting pay for employees? We want to hear from you! Leave a comment or join the discussion on Twitter.
I could not agree more with everything that has been commented so far. It was a literal slap in the face when my manager told me I received a whole .23 cent pay increase. Twenty three cents?! One yearly raise instead of two potential raises that could range anywhere from 0-5%? I leave work every night sweaty and feeling exhausted because on top of being expected to handcraft drinks and be polite to rude ignorant customers, we are also expected… Read more »
Starbuck’s corporate office should be ashamed to talk about wage increase of -,25 cents or less for baristas ( and believe me they’re working hard)> While those “big wigs” at the top make thousands and thousand they have the nerve to call this a wage increase. Who in the world can make a decent living on $ 8.00/hr much less even afford food, car repairs, fuel, etc. and if our government would have enough balls they should increase the min,… Read more »
Our raises were more of a slap in the face than anything. Now, new hires are making almost as much or more than I am after almost 3 years. I know this is happening at stores across the country, and it’s ridiculous that this “game-changing” pay raise was touted as something that would help workers. I still do not make a livable wage, and I know that a lot of people employed at Starbucks are not earning a livable wage… Read more »
Shame on you Kelly Clay for misreporting the plight of these poor workers! I truly hope you were morally strong enough to write a followup article after seeing all these reviews? I’ll certainly be very generous with my tips from now on when I get my expensive treat… Boo, to you Starbucks!!!
This is actually a pay decrease. I was given a .26 raise for the year, which I used to get .25 per 6 months. How the heck is this a raise?? Its a decrease in the long run- terrible.
Let me give you an update on this. My raise in January was less the the city of San Francisco’s minimum raise increase, so in the end, I lost money. Then, San Francisco raised minimum wage in June 2015 and I am now a minimum wage barista. Just a thought…. Why would city minimum wage increases still make a barista who has been working at Starbucks for over 3 years a minimum wage barista. Love making the same as inexpereinced… Read more »
I’ve worked for starbucks for four years now and the pay increase in January was a complete joke. It’s beyond upsetting that new hires will now come in making just as much or more than seasoned partners. Starbucks needs to consider how its decisions affect long term partners. I want to love it there but the feelings of unfair treatment are overwhelming. Come on Starbucks.
We totally got shafted. I can’t believe the audacity of it all! You all know what’s up. This was just an image boost for them. Not for us.
I work in a MD starbucks. Take advantage of the school program. It will be challenging but you must. Also take advantage of the bean stock. Learn about everything you can get. Yes, the pay is very little but the package is amazing. Take advantage.
Hey I’m a barista i work at starbucks. Great company i started with $9.35 my increase was to $11. And we get a rasie every year.
to all the fellow partners. yup…we got screwed yet again. I’m a 6 digit partner, whose last store was closed. I let a partner that got the pathetic medical benefits have the job. I found myself back with the siren. howard has never failed to disappoint me, but, this takes the cake. the hours cuts that happen in January, coinciding with this rather feeble (22 cents, baby…I can afford that new kidney!) raise, after having my incompetent d.m. bantying about… Read more »
Been with Sbux 8 years. I make 9.42hr. Slap in the face.
I have never worked at Starbucks but I have worked in a service industry for many years. Guess it is generational differences? I still clean, scrub, sweep up….I have a masters degree in business; it is part of doing business. when you feel you are above such simple tasks….THOSE tasks should be left for lower individuals? Oh my…come on young people….stop complaining.
The media does not portray what is actually happening and again do we need to say they are taking away one of our raises…..as a 7 year partner I am disgusted when I was thinking I would get that increase as a bump with my additional two raises a year, with both being under $0.22 to $.25 . No media has covered this issue corretly…….We are indirectly being SHAFTED and our merits and reason for hard work, well I work… Read more »
I pay $6.00 for a latte and they only give their employees $9.35 an hour? Let me guess, they take their tips and make them pay taxes on them right? I am never drinking that shit again!!
I came to Starbucks a year ago and I only get about 12 hrs a week. I’m told we don’t have any more hrs to give because that is all labor allowed. At the same time was told that we are not up to par on staff and we need to hire more Batista’s. That means we will get less hrs, at $8.00 an hr how are you to pay bills. Sad Company to work for.
I’m a manager at Starbucks and I make 9.50 an hour. When are they going roll a raise my way.
Beany – I’ve been with Starbucks for over 11 years now, and our pay increases were/are by percent. If you are indeed making the same as new hires, you need to call Partner Services. As a barista, not a shift much less a manager or DM, I make almost five dollars over Washington State’s minimum wage.
@Denny, that’s is such an ignorant mentality you displayed. People deserve to make a decent living for hard work, you sound like a real Ebineezer Scrooge. Just because someone can do what they please with their business, doesn’t mean it is morally or ethically the right thing to do. That’s just an excuse to be greedy and exploit people. Wake up and do some real logical thinking.
Back to fundamental American principles, people! No one forces anyone to work at Starbuck – – – they offer a salary/benefit package; so: >>> if you want to work there for the defined pay and benefits, then take the offer to work there and be quiet >>> if you do NOT like the defined pay and benefits, then do NOT take the offer to work there and be quiet no one owes you a job – now one owes you… Read more »
As a shift Supervisor, I received a .30 cent increase. Sure any little bit helps, but I honestly expected more that that especially since we’re now on a yearly review cycle… .30 cents until next January?! Not impressed..
The bump in pay I received is .25 cents bringing my overall rate to 8.25. It’s a nice bump up but frustrating since my year plus worth of raises now has me earning the same as a new hire. Am I spoiled to complain? Yes, without a doubt. It’s just something I feel I needed to share.
That is disappointing to hear considering how the staff serve hundreds of customers per hour and they always serve with a smile. For me, Starbuck’s is a splurge/treat. I’m a public school substitute teacher (by choice) and earn $10/hr, and often think of taking a service job during the busy hours instead of teaching, but this gives me pause.
This pay increase went through, and in my region we received a .22 cent raise. Not even worth talking about.
This article was absolutely terrible, inaccurate, and one-sided. I’m a 19 year old college student, living with my dad in Phoenix, Arizona. I’m working two jobs, Starbucks and a comic book shop. I get around 30 hours a week through Starbucks, and only 13-15 with the comic book shop. I would be completely unable to live on my own, even in a studio apartment in a bad neighborhood. I’ve been with Starbucks for almost a year, and I make $8.35… Read more »
I use to work for Starbucks and recently quit because the pay rate was just too low for what the baristas do on a daily basis. Starbucks doesn’t have it own cleaning team like janitors to clean their stores so the baristas are expected to clean everything including all the drains, scrub toilets, sinks, counter tops, ovens and everything else. Also the benefits everyone brags about are costly for baristas because even with the lowest coverage which I had $60… Read more »
This article was really one sided and clearly hasn’t done it’s research. “Millions of Americans make ends meet every day by working minimum wage jobs.” Clearly whoever wrote this has never worked a minimum wage job. How about millions of Americans struggle to make ends meet every day with minimum wage jobs, and the pay increae, may just bring up these employees to a living wage rate, but definitely not above it.
Not to mention the $789 dollars I receives from selling 13 shares of the free stock shares I am given for jus being a partner. Really not complaining I love the company I work for ;)- #starbux
I work for starbucks for 3 years now. Was worried about getting rid of the 6 month raises. I was making 9.10/hr ..my pay increase brought me to an even $10.00/hr. I figure I would have gotten maybe two .20 cent raises even though I deserve at leaste .50 per 6 months so all in all I’m happy with it !!!! ;)-
You people have lost the ability to hustle for the next better paying job. Instead you whine and hope someone will fix your problem. If people would get some gumption and look elsewhere 2 positive things would happen
1) You’d have a better paying job and self respect
2) Starbucks just might raise their wages to keep people.
You have the power yo move up, but instead you just stay and whine.
People who replied to this are forgetting the people who they voted for in office, it’s not only the jobs your working for, the problem goes beyond. Look at your taxes and the economy around you. Start looking outside the box. I forgot, I migrated to the United States of the dense and the land of the greed.
Sorry folks , any service industry or retail service job
Will always be low pay. Parents are right, get your education in engineering or in something that matters. Retail jobs are not meant to live off of unless you are in management. Coming from someone whom has worked this for 30 years make your life choices carefully..
Hey wait a minute if you get a real raise I will have to pay more for my over priced over roasted cup of soo called coffee. Now thats not fair
Well i just began working for Starbucks in 03/04/15 and i received 10 dollars an hour starting full time i received 35 to 40 hours to be exact.??????????????so nice try haters lol i forgot to mention im a barista.