LaMar’s Donuts announces 20% price hike in effort to pay employees more

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OVERLAND PARK, Kan. — LaMar’s Donuts said it will soon cost you more to get your morning sugar fix. The company plans to increase prices at least 20% at all of its locations.

LaMar’s said the hike is necessary so it can pay employees more as well as cover other costs that have increased since the beginning of the pandemic.

The announcement came less than a week after some employees walked out of a LaMar’s location in Overland Park. The employees claimed they were under appreciated, underpaid and overworked. The LaMar’s location reopened the next morning with a crew from Denver, according to the company.

LaMar’s said it was working on a plan to increase prices so it could pay employees more at all 16 of its corporately owned locations before the walkout on Saturday. The company said the raises may not apply to franchise locations because those locations are under different management.

In addition to higher pay, the company said it will also offer employees additional perks, like a $25 cash card for people who apply for a barista position and show up for an in-person interview.

New employees will receive a total of $650 in incremental bonuses if they stay with the company for 180-days. And any employee who refers another job candidate will earn $500 in incremental bonuses if that candidate is hired by LaMar’s Donuts and works for 180-days.

LaMar’s said it hopes customers will see the risk it is taking to pay its employees better. The company said its donuts already cost more than many other companies because each LaMar’s donut is handmade.

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