California Fast Food Minimum Wage Law Will Cost You $200 More a Year for Your Starbucks Habit

Starbucks has increased menu prices in its Golden State stores following the state’s $20 minimum wage mandate for fast-food workers. The new law, AB-1228, impacts fast-food establishments with more than 60 locations nationwide, including Starbucks, McDonald’s, and Pizza Hut. Items at Starbucks, where each store is corporately owned, have been jacked up by $0.50 to as much as $1.00, Business Insider found. A spokesperson for the coffee chain confirmed that the rising prices in California stores are a response to the higher minimum wage, but declined to reveal the average item increase.

The menu price increase was implemented as a way to offset the higher labor costs, but loyal customers who visit Starbucks regularly might not be able to dish out the extra change, regardless of whether or not they agree their baristas should get paid more. For example, if your typical order increases by $0.80 and you get Starbucks every workday, multiplying that by 260 drinks, you’re paying an additional $208 a year for your daily treat. If you get more than one item on the menu, like a drink plus a snack, and/or purchase coffee more than five times per week, you’ll be spending even more each year.

The price increase appears to be upsetting both customers and baristas, with some customers turning to their Nespresso machine to make their drink now. Some baristas feel bad telling people the price and miss some of their regulars who have stopped coming by as often.

Read More @ NY Post

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