The coffee giant Starbucks announced a series of updates to its tipping system and employee compensation structure, aiming to boost earnings for baristas and shift supervisors across its stores.
One of the key changes includes expanding tipping options. Customers will now be able to leave tips on a broader range of credit and debit card transactions, including when paying in-store through the company’s mobile app. Previously, tipping was mainly limited to in-app purchases and in-store cash or select digital options.
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Starbucks expands tipping system and introduces new bonuses for baristas
In addition, Starbucks revealed a new bonus program that could allow employees to earn up to $1,200 annually on top of their base pay. The bonuses will be tied to customer service performance and sales targets and are set to take effect in July.
The company also confirmed that, starting in August, employees will be paid on a weekly basis instead of the current schedule. According to Starbucks, this decision comes in response to feedback from baristas seeking more frequent pay.
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However, the move has drawn criticism from Workers United, the union representing some Starbucks employees. The organization stated that the changes are a direct response to ongoing labor organizing efforts but argued that tips and bonuses remain largely outside workers’ control, limiting their impact on stable income.
The updates come amid continued labor activism within Starbucks stores in the United States, where employees have been pushing for improved wages and working conditions.
