Starbucks to award bonuses to baristas, expand tipping
A Starbucks barista fulfills an order at a store in South Philadelphia.
Mark Makela | Reuters
Starbucks The company said Thursday it will give $300 quarterly bonuses to baristas and shift supervisors if their stores meet certain goals to help the coffee chain’s recovery efforts.
The program will begin in July, with the first payout coming in the fall to store employees who meet or exceed certain sales, operational and customer service metrics, Starbucks Chief Operating Officer Mike Grams and Chief Operating Officer Sara Kelly wrote in a memo to employees on Thursday.
However, baristas at locations represented by Starbucks Workers United likely won’t receive quarterly bonuses until Starbucks and the union sign a collective bargaining agreement.
“This new program, which is available in approximately 5% of locations in the United States where partners have unions, will be subject to collective bargaining as required by federal law,” Grams and Kelly said in the letter.
Negotiations between Starbucks and the union have been at a standstill for more than a year. In March, the company said it was offering to continue face-to-face negotiations with Workers United. Talks between the two sides are expected to continue this month.
Under CEO Brian Niccol, Starbucks is undergoing a transformation focused on “getting back to Starbucks.” Much of the strategy has focused on improving the customer experience, from making cafes more comfortable to requiring baristas to write messages on cups.
But the comeback plan also depends on the baristas and their willingness to realize Niccol’s vision. Starbucks has sought to improve the barista experience by increasing headcount and planning to add assistant managers to most locations in North America this year.
More changes await baristas. The company also announced Thursday that it will offer customers more ways to tip their baristas. Anyone who orders and pays through the mobile app will be able to tip, as will customers who scan the app when registering to pay.
According to the company, baristas could see their salaries increase by up to 8% with the new bonuses.
Additionally, starting in August, all Starbucks US employees will be paid weekly. Currently, most baristas receive their paychecks every two weeks, depending on local labor laws.
So far, the “Back to Starbucks” strategy is starting to pay off for the company. Last quarter, the chain reported traffic growth for the first time in two years.
