“US hourly workers, which include baristas and shift supervisors, can now earn an additional US$1,200 a year if their store meets targets for sales, operations and customer service,” Starbucks said yesterday.
The programme kicks off in July, and the first quarterly payout will be paid in the fall.
Starbucks is looking for a jolt after slow service and a focus on to-go orders resulted in stagnant sales.
Brian Niccol, who joined as CEO in 2024, launched a strategy that revolves around more inviting cafes with comfier seating, faster orders and warmer exchanges with customers.
That plan is starting to bear fruit: global sales at established locations climbed 4% in the last quarter, the fastest growth in two years.
Starbucks also outlined a stronger-than-expected outlook for 2026.
However, investors are eager to see sustained growth.
Starbucks is also adding an option for customers to tip by credit and debit card when using the chain’s app to order online or pay at the register.
“The bonuses and the gratuities could lift worker pay by 5% to 8%,” the company said.
Workers will also be paid weekly, instead of twice a month.
These changes will subject to collective bargaining at unionised locations, which account for about 5% of stores, according to the statement.
Starbucks Workers United has been pushing for higher wages and more consistent schedules.
“It’s notable that these bonuses and tips will be largely out of baristas’ control, relying on customer tipping and store performance metrics as determined by Starbucks management,” the group said in a statement.
Starbucks has spent about US$500 million since launching its turnaround to have more workers on the clock at the busiest times.
“It’s now adding a coach position that will help the store manager keep locations running smoothly,” the chain said.
The changes apply to cafes run directly by the company, not those managed by third-party licensees, such as airports and grocery stores.
Company-operated locations in the US employed 214,000 people as of September, according to regulatory filings.
Starbucks expects better result to offset the cost of the bonuses.
The company’s shares rose 7.3% this year through yesterday’s close, compared with a nearly 4% decline in the S&P 500 Index.