Starbucks has announced a new initiative aimed at rewarding baristas and shift supervisors with quarterly bonuses of $300, contingent upon meeting specific sales, operational, and customer service targets. The program is set to launch in July, with the first payouts scheduled for the fall. The announcement came from Chief Operating Officer Mike Grams and Chief Partner Officer Sara Kelly in a memo sent to employees.
However, baristas at locations represented by Starbucks Workers United may not receive these bonuses until a collective bargaining agreement is reached between the company and the union. Grams and Kelly noted that the bonuses for the approximately 5% of U.S. locations with union representation would be subject to federal bargaining laws. Negotiations, which have seen limited progress over the past year, are expected to resume this month.
As part of CEO Brian Niccol’s strategy to revitalize the brand, Starbucks is focusing on enhancing the customer experience and improving the working conditions for baristas. This includes increasing staffing levels and introducing assistant manager roles in most North American stores.
In conjunction with the bonus initiative, Starbucks plans to implement new tipping options for customers using its mobile app, allowing them to tip baristas directly whether they order through the app or scan it at the register. These changes, combined with other initiatives, could potentially raise barista pay by as much as 8%. Furthermore, starting in August, all U.S. employees will transition to weekly pay schedules, a shift from the current biweekly system.
Already, elements of the “Back to Starbucks” strategy appear to be beneficial, with the company reporting an increase in customer traffic for the first time in two years.
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