Starbucks is hiking wages in the US amid the labor shortage squeezing restaurants

• Starbucks will hike wages next year, taking average pay to nearly $17 an hour.
• By next summer, Starbucks' hourly wage will be in the $15 to $23 range.

Starbucks will be giving pay raises to baristas in the US, the coffee chain said on Wednesday.

The announcement comes as restaurants in the US deal with an industry-wide labor shortage.

In late January, Starbucks will give baristas employed for at least two years pay raises of up to 5%. Those employed for at least five years could get up to 10% increases, said the coffee chain.

By the summer of 2022, the hourly wage will reach the $15 to $23 an hour range. This will take the average pay for all hourly workers in the US to nearly $17 an hour, said Starbucks. Its current average hour pay now is $14 an hour, according to Bloomberg and CNBC.

The chain is also giving $200 in referral bonuses.

Last December, Starbucks gave at least 10% raises to all employees, Insider's Kate Taylor reported. The Seattle-based coffee chain said it spent $1 billion on better wages and benefits in the last two years.

Starbucks share prices are up about 10% year-to-date.