Starbucks Boosts Weekly Pay, Tips & Bonuses

Starbucks will move to weekly pay for all U.S. store workers and roll out a program that adds bonuses and expands tips, it said Thursday, as concerns persist over its stalled talks with the union representing some U.S. baristas.

• Baristas can receive tips on mobile orders, as well as in-store purchases completed with the use of the mobile app. Previously, tips were available only on in-store purchases made with cash or cards.
• A new bonus structure based on sales, operational and customer service targets will also be put in place, where baristas and shift supervisors can earn up to an additional $1,200 per year, the company said.
• Starbucks will now pay all its U.S. store employees weekly, in response to feedback from baristas, with the plan rolling out in July.
• At its about 5% unionized stores in the U.S., the plan will be subject to separate collective bargaining, Starbucks said.
• Starbucks and Workers United, the union representing some baristas, said recently that bargaining talks were to resume soon.
• The union has pressed Starbucks for better staffing, more predictable schedules and higher pay after drawn-out contract talks. Starbucks has said its baristas currently average $30 an hour in total pay and benefits.
• The company has been closing underperforming stores as part of a turnaround plan under CEO Brian Niccol.
• It has invested $500 million for adequate staffing during peak hours, since the turnaround began in September 2024, the company has disclosed previously.
• Two proxy advisory groups warned shareholders earlier this year that Starbucks may be neglecting the financial and reputational risks that stem from labor disputes.