Californians could pay $200 more a year for their Starbucks habit

Your coffee habit just got a lot more expensive if you live in California.

Across the state on Monday, a new law, AB-1228, went into effect after being signed by Gov. Gavin Newsom last September. In addition to creating a “Fast Food Council” to oversee labor issues across the quick-eats industry, the law also mandated a $20 minimum wage for fast-food workers at establishments with more than 60 locations nationwide, including favorites like Starbucks, McDonald’s, and Pizza Hut.

At Starbucks, where each store is corporately owned, increased prices took effect as soon as the new law did, BI found.

Starbucks’ Q4 results from last year revealed the chain’s sales were up 8% in North America, and the company’s net revenues rose 11% to a record $9.4 billion.

A roughly 15% price increase

BI found prices on Starbucks menu items increased from $0.50 to as much as $1.00 by comparing previous receipts to current prices.

A spokesperson for Starbucks confirmed to BI that prices in stores across California increased in response to the new minimum wage but declined to specify the average menu item increase.