After a coffee shop owner in Iowa raised wages to $15, he got nearly 50 applications in 2 weeks

  • At a coffee shop in Jefferson, Iowa, job applications are pouring in because it pays $15 an hour.
  • Greene Bean Coffee owner Rich Osborne says he got about 50 applications in two weeks after raising pay.
  • He told Insider it disproves the narrative that nobody wants to work right now.

Loading Something is loading.

Greene Bean Coffee in Iowa is demonstrating the power of paying workers $15 an hour.

Once the shop raised wages to $15 in June, owner Rich Osborne told Insider, “that kind of upended the entire narrative out there that people don’t want to work after the pandemic anymore.” It wasn’t a drastic increase — Osborne said they were averaging about $12 an hour beforehand — but it still stood to put a good chunk of money in employees’ pockets. 

“Once I wrote it down on a piece of paper in front of me and saw how little the numbers were, I mean, it was a no-brainer,” Osborne said. “So I think people just have a knee-jerk reaction to $15: ‘Oh my God, that’s so much.’ And it’s not.”  

He added: “There’s plenty of people out there that would gripe that high schoolers or college kids or entry-level jobs don’t need to be making that much. That just fueled me even more to do something about it.”

As college started back up, the shop needed to hire new workers. As The Jefferson Herald’s Andrew McGinn first reported, that’s when the applications really started pouring in.  

“I got like 50 in two weeks, and I think that’s more I’ve gotten than the entire nine years we’ve been here,” Osborne said. He said the coffee shop has “proved otherwise” the narrative that people don’t want to work right now

Osborne’s story sticks out amidst a sea of reports about traditionally low-wage service jobs desperately scrambling for workers. Some are offering hiring bonuses; others are offering free iPhones. While it’s true that leisure and hospitality leads the pack in hiring, it’s also seeing an elevated number of workers quitting.

Some economists and the president have argued that the solution to the labor shortage is hiking wages to at least $15 an hour. That’s the number activists and politicians have coalesced around for years, and it’s more than double the current federal minimum wage of $7.25 (which hasn’t budged since 2009). 

Iowa is one of the 21 states whose minimum wage is the same as the federal rate. Many states have raised wages on their own, but localities in Iowa are banned from raising their minimum wage above the state’s level. 

The current hot labor market has seemed to put some pressure on wages, with marked growth every month (even outpacing inflation since the start of the pandemic). As Insider previously reported, average pay for restaurant and grocery workers just exceeded $15 an hour for the first time. While that means half of workers still earn less than that, Greene Bean is part of a trend toward higher pay.

“Smart people realize that you invest in your business, so therefore you have to invest in your employees,” Osborne said. “And that’s what’s great for me: I can trust them to run my business for me. I don’t have to be the one waking up and opening the door first thing in the morning.”

One big concern about raising wages: Things will get more expensive. Massive chain Chipotle said that was the case when they raised their wages. 

That’s happening at Greene Bean, too. At the same time as the wage hike, they updated their menu, and Osborne said prices got rounded up to the next quarter. 

Osborne said they did it so “we didn’t have to deal with so much change.” Their most expensive drink is about $6, but a regular old large cup of coffee will still run you $2.

And his higher wage is impacting more than his own employees.

“‘I’ve already seen interest in other businesses trying to figure out how to do it,” Osborne said. “If you’re going to invest in your business to make more money, investing in people to do it for you is probably a better investment than buying a shiny new machine.”

Source: After a coffee shop owner in Iowa raised wages to $15, he got nearly 50 applications in 2 weeks

*This is a free press release. Upgraded press releases are ad-free!

UK’s first fusion technology centre provides Yorkshire jobs boost

A ground-breaking new fusion technology facility, which has the capability to test components in the simulated conditions of a fusion power plant, is now open and operating in South Yorkshire.The Advanced Manufacturing Park in Rotherham was chosen by the UK Atomic Energy Authority (UKAEA) as the ideal location for the new 25,000 sq. ft. fusion…

Read Press Release

Funeral Service Held in Covina for Marine Killed in Afghanistan

A U.S. Marine Corps carry team transfers the remains of Marine Corps Lance Cpl. Dylan R. Merola of Rancho Cucamonga, California, Aug. 29, 2021 at Dover Air Force Base, Delaware. Merola was assigned to 2nd Battalion, 1st Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, California. (Jason Minto/U.S. Air Force via Getty…

Read Press Release

Consumers Find Influencer Role Increasingly Attractive

Axios, Sunday, September 26, 2021 4:39 PM Brands are throwing billions of dollars at online content creators, so the number of people looking to become influencers has exploded during the pandemic. “Takumi, a premier influencer marketing agency, received twice as many applications from people looking for representation in 2020 then it did in 2019,” per…

Read Press Release

Best Oculus Quest 2 accessories for 2021 – CNET

The powerful and affordable Oculus Quest 2 has brought virtual reality as close as it’s ever been to the mainstream. Facebook’s VR gaming system is cable-free, which is essential for having a great VR experience. While prices for it start at $300 for the 64GB version, it’s pretty bare-bones and doesn’t include anything beyond the VR…

Read Press Release

Clyde Edwards-Helaire Of The Kansas City Chiefs Remains Inconsistent

Kansas City Chiefs running back Clyde Edwards-Helaire is tackled by Los Angeles Chargers defensive … [+] back Nasir Adderley on Sunday, Sept. 26, 2021 in Kansas City, Mo. (AP Photo/Ed Zurga) ASSOCIATED PRESS The Kansas City Chiefs wanted to show their confidence in the scapegoat of the previous week’s contest. After fumbling the ball with 1:25…

Read Press Release

Why Canadian Conservatives Lost the Election

When they went soft on core principles, demoralized voters stayed home or voted for an upstart third party. NRPLUS MEMBER ARTICLE W hen Canadian prime minister Justin Trudeau called a snap election for this past Monday, the Conservative opposition had the chance to present a real contrast to his “woke” Liberal government. Instead, Conservative Party…

Read Press Release

After a coffee shop owner in Iowa raised wages to $15, he got nearly 50 applications in 2 weeks - Click To Share

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Share on whatsapp