Starbucks is hiking wages in the US amid the labor shortage squeezing restaurants

• Starbucks will hike wages next year, taking average pay to nearly $17 an hour.
• By next summer, Starbucks’ hourly wage will be in the $15 to $23 range.
• Starbucks’ announcement comes amid an industry-wide labor shortage.

Starbucks will be giving pay raises to baristas in the US, the coffee chain said on Wednesday.

The announcement comes as restaurants in the US deal with an industry-wide labor shortage.

In late January, Starbucks will give baristas employed for at least two years pay raises of up to 5%. Those employed for at least five years could get up to 10% increases, said the coffee chain.

By the summer of 2022, the hourly wage will reach the $15 to $23 an hour range. This will take the average pay for all hourly workers in the US to nearly $17 an hour, said Starbucks. Its current average hour pay now is $14 an hour, according to Bloomberg and CNBC.

The chain is also giving $200 in referral bonuses.

Last December, Starbucks gave at least 10% raises to all employees, Insider’s Kate Taylor reported. The Seattle-based coffee chain said it spent $1 billion on better wages and benefits in the last two years.

Starbucks share prices are up about 10% year-to-date.