(NEWSMAX) – Starbucks Corp. will raise menu prices in 2022 and reduce some spending to offset soaring costs for labor and goods, as rising COVID-19 cases prompted the coffee chain on Tuesday to lower estimates for profits this year.
The company missed estimates for quarterly profits and comparable sales as the fast-spreading omicron variant also led to delayed office reopenings and new restrictions in China, the company's fastest growing market. Shares fell slightly in extended trading, following a 16% drop last month.
Restaurants are paying more for everything from chicken and cooking oil to packaging and transportation services amid record inflation and COVID-19 disruptions, and many, including Starbucks have raised wages amid the labor shortage.
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