Starbucks is planning to raise its menu prices as inflation rises and labor costs jump. In October 2021, the coffee chain started to hike its prices in the US and most recently last month. According to CEO Kevin Johnson, the company is planning even more price hikes this year. But the recent changes have not stopped customers from getting their coffee drinks. Starbucks chief operating officer John Culver said that despite the rising prices, their customer demand continues to grow.

Like many other brands, along with inflation, Starbucks is also dealing with higher labor costs. Several major employers are increasing wages in an effort to attract job-seekers as businesses, particularly restaurants, have been struggling to hire from a tight labor market. Late last year, Starbucks announced that it would raise the salary of its baristas to at least $15 an hour. McDonald’s has also increased menu prices by about 6% last year. But those price hikes did not discourage customers. In fact, sales at US McDonald’s stores open at least 13 months rose 13.8% last year, the largest annual increase since McDonald’s started reporting same-store sales in 1993.