Starbucks to Pay Baristas $1,200 Yearly Bonuses, Expand Mobile Tipping
Starbucks will pay U.S. baristas up to $300 per quarter—or $1,200 annually—when stores hit sales, operational and service goals, and will expand tipping to mobile orders and at-register payments. Starting this summer, weekly paychecks will replace bi-monthly cycles, boosting average hourly earnings by 5%–8% above the current $30-plus rate.
1. Bonus Program Details
Starbucks will offer eligible U.S. hourly employees up to $300 per quarter—totaling $1,200 annually—if their stores meet sales, operational and customer service targets. The first quarterly bonus payout is scheduled for this fall.
2. Expanded Tipping Channels
Beginning this summer, customers can tip baristas on mobile orders paid by credit card and at-register scans, in addition to existing in-store and drive-through options. This expansion aims to boost take-home pay for baristas.
3. Shift to Weekly Pay
The company will move from bi-monthly to weekly paycheck distribution starting in July to provide faster access to earnings. Starbucks projects this change, combined with bonuses and tipping, will raise average hourly compensation by 5%–8%.
4. Turnaround Strategy and Labor Relations
These measures form part of a $500 million turnaround initiative that has delivered 4% global sales growth last quarter and a 7.3% share price increase year-to-date. Ongoing negotiations with the union representing workers at about 600 U.S. stores remain unresolved.