Starbucks Boosts U.S. Worker Pay with Bonuses, Tips

Starbucks announced a series of changes on Thursday aimed at increasing compensation for its U.S. hourly workers, including baristas and shift supervisors, through performance-based bonuses, expanded tipping options, and more frequent paychecks. The Seattle-based company unveiled the incentive program during a period of renewed focus on improving store operations and customer service across its roughly 10,000 U.S. locations.

Under the new program, eligible employees can earn up to $300 in quarterly bonuses, potentially adding $1,200 annually, if their stores meet or exceed targets for sales, operations, and customer service. The initiative launches in July, with the first payouts scheduled for the fall. Starbucks officials stated that the bonuses recognize teams that deliver excellence and align with the company's commitment to shared success. Chief Operating Officer Mike Grams and Chief Partner Officer Sara Kelly wrote in a letter to employees that the program reflects progress made possible by frontline workers.

Additionally, starting in July, customers will be able to tip baristas via credit or debit cards for mobile orders and app-based payments at the register. Previously,...