Starbucks Profits Up 31% Last Year — And It Has The Nerve To Blame Recent Price Hikes On Inflation?

  • Starbucks has announced that it’s going to raise prices again, right after a round of increases just four months ago. The huge corporation warns that it will yet again be forced to increase your coffee bill soon after this latest round of price hikes.
  • Starbucks Excuse? Inflation. CEO Kevin Johnson explained that “we experienced higher-than-expected inflationary pressures,” claiming their increased costs were due to Omicron and a tight labor market.
  • Conveniently, the CEO forgot to mention that Starbucks corporate profits soared 31 percent during the last three months of 2021, reaching $816 million.
  • Adding insult to injury, in a year that he was trying to characterize as difficult, Mr. Johnson’s salary jumped to a whopping $20.4 million due to his new CEO pay raise. 

Sahid Fawaz from Labor 411 writes:

“Starbucks announced today that it is raising its prices yet again. It increased its prices four months ago. And says it will raise prices again after this round of increases.

The reason it gives is that it has no choice because of inflation, among other things.

Its CEO, Kevin Johnson, said, “Although demand was strong, this pandemic has not been linear and the macro-environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron, and a tight labor market.”

True, costs have increased.

But I can’t help wonder: if costs are going up, why in the world did it raise its CEO pay by almost 40%? It has the money to pay Mr. Johnson $20.4 million, while crying that it needs to raise prices to get by…”

See full story here.

Categories: Business, Economy, Labor, Society, WTF?

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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