Starbucks to award bonuses to baristas, expand tipping

Starbucks to award bonuses to baristas, expand tipping

CNBC business

Key Points:

  • Starbucks will introduce quarterly $300 bonuses for baristas and shift supervisors starting in July, contingent on stores meeting specific sales, operational, and customer service targets.
  • Baristas at unionized locations (about 5% of U.S. stores) will only receive bonuses after Starbucks and Starbucks Workers United reach a collective bargaining agreement, with negotiations expected to resume soon.
  • The bonus program is part of CEO Brian Niccol's broader turnaround strategy focused on enhancing the customer experience and improving the work environment for baristas, including better staffing and adding assistant managers.
  • Starbucks will also expand tipping options for customers via the mobile app and register scans, potentially increasing barista pay by up to 8%.
  • Starting in August, all U.S. Starbucks employees will shift to weekly paychecks instead of the current biweekly system, improving payment frequency.

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