Dive Brief:
- Starbucks started its quarterly bonus program this month, according to a Monday press release. Cafe workers who reach key metrics can receive quarterly bonuses, called the “Best of Starbucks Reward,” of up to $300.
- The company is also adding more tipping options on July 22 and shifting toward a weekly pay scheme at the end of the month.
- Starbucks said the combined changes could raise hourly worker pay between 5% and 8%. The median Starbucks worker — a part-time barista in the U.S. — earned about $17,279 in 2025, according to the chain’s 2026 proxy materials.
Dive Insight:
The bonuses, extra tips and weekly pay option could help the brand further reduce turnover and bring in more workers.
Under CEO Brian Niccol, Starbucks has made major investments in its in-store operations, from a major $500 million labor allocation last summer to the company’s effort to hire thousands of assistant managers across its North American store system.
The coffee chain said it would increase the transparency of its employee rewards metrics. It also will add “clearer performance measures, including sales, staffing, inventory and Grow performance,” as well as a new, points-based attendance system to improve shift completion.
Starbucks said these efforts were “designed to recognize and reward many of the behaviors and contributions that help create a great Starbucks experience every day, from showing up for scheduled shifts and delivering excellent customer service to helping coffeehouses meet key performance expectations.”
Starbucks, due in part to its hourly labor investments and its marketing and customer experience changes, has seen a significant rebound in recent quarters with same-store sales and traffic up after a years long slump.
The brand is spending big on other major projects, including its $100 million secondary headquarters in Nashville, Tennessee, and a major, experiential renovation program targeting U.S. stores.
