Starbucks to award bonuses to baristas, expand tipping

Starbucks will award baristas and shift supervisors quarterly bonuses of $300 if their stores hit certain targets to aid the coffee chain’s turnaround efforts, the company said Thursday.

The program will begin in July, with the first payout coming in the fall to store employees who meet or exceed specific sales, operational and customer service metrics, Starbucks Chief Operating Officer Mike Grams and Chief Partner Officer Sara Kelly wrote in a memo to employees on Thursday.

However, baristas at locations represented by Starbucks Workers United likely will not see the quarterly bonuses until Starbucks and the union reach a collective bargaining agreement.

“This new program, at the approximately 5% of U.S. locations where partners have a union, will be subject to collective bargaining as required by federal law,” Grams and Kelly said in the letter.

Negotiations between Starbucks and union have been at a standstill for more than a year. In March, the company said that it had proposed to resume in-person bargaining with Workers United. Talks between the two parties are expected to resume this month.

Under CEO Brian Niccol, Starbucks has been undergoing a turnaround focused on getting “back to Starbucks.” Much of the strategy has centered on improving the customer experience, from making its cafes cozier to requiring baristas to write messages on cups.

But the turnaround plan also hinges on its baristas and their willingness to carry out Niccol’s vision. Starbucks has tried to improve the barista experience, with improved staffing and plans to add assistant managers to most North American locations this year.

More changes are ahead for baristas. The company also announced on Thursday that it will give customers more methods to tip their baristas. Anyone who orders and pays through the mobile app will be able to tip, as well as customers who scan the app at the register to pay.

Combined with the new bonuses, baristas could see their pay rise as much as 8% as a result, according to the company.

Additionally, all Starbucks U.S. employees will be paid on a weekly basis, starting in August. Currently, most baristas receive their paychecks every other week, depending on local labor laws.

So far, the “Back to Starbucks” strategy is starting to pay off for for the company. Last quarter, the chain reported traffic growth for the first time in two years.