Starbucks is introducing a new bonus program and shifting to weekly pay for baristas as it works to improve sales performance and customer service across its stores. The changes are part of broader efforts under new leadership to strengthen store operations and customer experience.
Bonus Program Tied To Store Performance
The company said baristas can earn up to $1,200 annually through a performance-based bonus structure. Workers will be eligible for up to $300 per quarter if their store meets or exceeds internal goals related to customer service and sales, though specific targets were not disclosed.
The bonus program is set to begin in July.
Weekly Pay Aims To Increase Financial Flexibility
Starbucks is also moving to a weekly pay schedule, replacing its previous system. The company said the change is intended to provide employees with greater financial flexibility.
Turnaround Efforts Show Early Sales Improvement
The updates come as Starbucks works to improve growth under chief executive Brian Niccol. The company has reported several quarters of flat or declining sales prior to its most recent results.
In its latest quarter, same-store sales increased by 4%, which analysts have linked to the company’s “Back to Starbucks” plan. The strategy includes menu updates and operational changes such as a revised barista dress code.
Starbucks said the new incentive program is designed to recognize employees’ role in delivering improved customer experiences as part of the ongoing transformation.
Tipping Changes Expected To Increase Barista Earnings
The company is also updating its tipping system within its mobile app and for in-store payments made through app scanning. Starbucks said the changes are intended to make it easier for customers to leave tips.
The company estimates that these adjustments could increase barista tips by between 5% and 8%.
Featured image credits: Wikimedia Commons
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