Starbucks Announces Higher Pay, Higher Prices

On Monday, Starbucks announced it would increase worker wages; on Tuesday, the company announced it would also increase the cost of some of its drinks. The two developments are unrelated: As Fortune notes, the price hikes (between 10 and 30 cents per beverage) are thanks to rising coffee costs, not increased worker pay. (And prices on 65% of Starbucks beverages will not change.) As for the wage bump, the company said employees will receive raises of at least 5% effective Oct. 3, the Chicago Tribune reports.

Starbucks is making the move in order to ensure it remains "a retail employer of choice," per CEO Howard Schultz's announcement. The company is also doubling its annual awards of shares in Starbucks stock for employees who have been with the company for two continuous years; when combined with the raises, compensation packages could be raised up to 15% for some employees. The announcement also mentioned other workplace changes that will allow workers to have "more room for self-expression," and some employees are speculating (and hoping) Starbucks will change its dress code to allow employees to sport dyed hair—currently, "bright or unnatural" colors are not allowed. (More Starbucks stories.)