Starbucks announced several changes to compensation and tipping for its U.S. store workforce on Thursday, moving to weekly pay for all U.S. store employees and launching programs to widen tipping and add bonus opportunities for baristas and shift supervisors.
Under the revised tipping policy, customers who place mobile orders will now be able to leave tips for baristas. Previously, tips were limited to in-store purchases made with cash or card. In addition to the expanded tipping eligibility, the company outlined a new bonus structure tied to sales, operational metrics and customer service goals. Starbucks said baristas and shift supervisors could earn up to an additional $1,200 per year through that bonus program.
Starbucks also said it will move all U.S. store employee pay to a weekly cadence in response to feedback from employees. The company said the weekly payroll change will begin rolling out in July.
Starbucks noted that at its roughly 5% of U.S. stores that are unionized, the new plan will be subject to separate collective bargaining processes. The company and Workers United, the union that represents some baristas, said recently that bargaining talks were expected to resume soon.
The union has pressed Starbucks for improvements including better staffing, more predictable schedules and higher pay following extended contract negotiations. Starbucks stated that its baristas currently average $30 an hour in total pay and benefits.
The compensation and tipping changes occur against the backdrop of a broader turnaround program led by CEO Brian Niccol. As part of that plan, Starbucks has been closing underperforming stores. The company has also previously disclosed a $500 million investment aimed at ensuring adequate staffing during peak hours since the turnaround began in September 2024.
Separately, two proxy advisory groups warned shareholders earlier this year that Starbucks may be overlooking financial and reputational risks that arise from labor disputes.
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