Starbucks boosts barista pay to improve service

The news: Starbucks is offering baristas cash perks and more frequent paychecks to incentivize faster, friendlier, and better service.

The details: Starbucks says the changes would boost barista pay by as much as 8%.

  • Starting in July, hourly workers will be able to earn an additional $1,200 annually if their stores hit sales, operations, and customer service targets.
  • The company is also adding the option for customers to tip by credit or debit card when using Starbucks’ mobile app to order or pay.

On top of that, workers will now be paid weekly, rather than twice per month.

However, those bonuses will not be available to workers at unionized stores—which make up roughly 5% of US locations—until a collective bargaining agreement is reached.

The implications: Starbucks’ turnaround hinges on its baristas. By tying employees’ incentives to store performance, the company is motivating them to play a more active role in creating a welcoming atmosphere and delivering the distinctive coffeehouse experience it aims to cultivate.

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