Coffee prices soared to a 10-year high on Monday, with experts projecting the high costs to last well into 2023, CNBC reported.
Coffee contracts for December hit $2.34 per pound at the end of Monday’s trading day, CNBC reported. Coffee futures on the New York Intercontinental Exchange soared to $2.46 on Thursday, recording the highest price since 2011.
Seattle-based Starbucks announced it will increase hourly wages next year as the coffee giant faces the dual pressures of unionization attempts and staffing shortages.
According to a press release from the company, starting in January of 2022, hourly employees with two or more years of service could see a 5% raise and those with five or more years of service could see a 10% raise.
By the summer of next year, the company says its average hourly pay will be $17, up from the current average of $14. Employees will make between $15 and $23 an hour across the country, depending on location and tenure.
The press release did not address what impact the moves will have on coffee prices.