Businesses begin increasing prices to compensate for rising cost of products, pay | Mid-Missouri News

Businesses begin increasing prices to compensate for rising cost of products, pay | Mid-Missouri News

COLUMBIA – Many local and national businesses are beginning to increase prices of their products. 

This comes after loss of business from the pandemic, as well as needing more staff. The increase of pricing will compensate for raising employee pay.

This also comes after Gov. Mike Parson’s plan to end unemployment programs this Saturday. 

In a news release from May, Gov. Parson said he is ending these unemployment programs to “address workforce shortages across the state.”

“From conversations with business owners across the state, we know that they are struggling not because of COVID-19 but because of labor shortages resulting from these excessive federal unemployment programs,” Gov. Parson said.

Chipotle announced their menu prices were raised about 4% in order to compensate for raising the wage of their employees. 

Chipotle is not the only business doing this. McDonald’s and Olive Garden said they would increase pay in order to attract workers. 

The increase in the cost of products is seen in local businesses too.

Lakota Coffee barista Drew Simms says he has seen the increase.

“I can totally see it happening here in the future, especially because of the pandemic, the price of things have gone up,” Simms said. “We recently raised our coffee prices by 25 cents. The price of coffee is going up as well, so that’s another reason why we’ve had to increase our prices.” 

He doesn’t think this will turn customers away. 

“It’s never really been a problem so I don’t see it becoming a problem with people. I don’t think we would raise our prices so high that it becomes a problem, it’s something you would barely even notice but it makes the difference,” Simms said. 


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