Starbucks to Raise Prices; Cites Increased Material and Labor Costs

(Seattle, WA) -- Seattle-based Starbucks announced it will be raising again. The company says that's to offset increasing costs for labor and materials. They cited increased spending on COVID-19 pay including paid time off for employees to receive vaccinations or to those who contracted the virus. Additionally, the coffee chain pointed to more anticipated supply chain shortages.

Critics have pointed out that the company reported a net increase in profits last year, and the company's CEO saw over a $5 million raise between base salary and stock reward increases. However, Starbucks missed its estimates for quarterly profit and sales, particularly amid COVID restrictions in China. Shares fell as much as five percent in after-hours trading after the first-quarter outcomes were reported.