Starbucks raising wages at least 3% starting Jan. 1

Starbucks announced Monday that it is raising wages for its workers at least 3% starting next year as part of an expanded benefits package the company is hailing as being "well beyond the industry average." 

The coffee giant said "Effective January 1, eligible U.S. retail hourly partners will see an incremental pay increase come to life, with at least a 3% increase and differentiated pay for eligible tenured partners." 

Starbucks adds that eligible employees with 2-5 years of service will see at least a 4% raise, while those with five or more years will get at least 5%. A spokesperson for Starbucks told FOX Business that there will be no menu price increases to offset the wage increases.