Starbucks moves to weekly pay and adds US worker bonuses

STARBUCKS CORP has announced a transition to weekly pay for all store workers in the United States, alongside a new program to expand digital tipping and performance-based bonuses. The move to weekly pay, scheduled to roll out in July, comes in response to direct feedback from the company's baristas. Under the new tipping structure, baristas can receive gratuities on mobile orders and in-store purchases completed via the Starbucks mobile app, expanding beyond the previous system that only allowed digital tips for card or cash transactions. Furthermore, a new bonus program based on sales, operational targets, and customer service metrics will allow baristas and shift supervisors to earn up to an additional $1,200 per year. These initiatives are being introduced as the company continues to navigate its relationship with Workers United, the union representing a portion of its baristas. For the approximately 5% of stores that are unionized, the implementation of these plans will be subject to separate collective bargaining. Both Starbucks and the union recently indicated that contract negotiations are expected to resume shortly. These updates are part of a broader turnaround strategy under CEO Brian Niccol, which includes closing underperforming locations and investing $500 million to ensure adequate staffing during peak hours. Starbucks reported that its baristas currently average $30 per hour in total pay and benefits. The company's recent actions also address concerns from proxy advisory groups, which warned shareholders earlier this year about the potential financial and reputational risks linked to ongoing labor disputes.