Starbucks expands weekly pay, adds more tips and bonuses for US baristas

April 2 (Reuters) – Starbucks will move to weekly pay for all U.S. store workers and roll out a program that adds bonuses and expands tips, it said on Thursday, as concerns persist over its stalled talks with the union representing some U.S. baristas.

* Baristas can receive tips on credit and debit cardtransactions using mobile orders and in-store purchasescompleted with the use of the mobile app. * Previously, tips were available only on in-store anddrive-thru purchases made with cash or cards, or when using theStarbucks app. * A new bonus structure based on sales, operational andcustomer service targets will also be put in place, wherebaristas and shift supervisors can earn up to an additional$1,200 per year. * The new bonus structure and tipping expansion will comeinto effect in July, the company said. * Starbucks will now pay all its U.S. store employeesweekly, in response to feedback from baristas, with the planrolling out in August. * At the about 5% unionized stores in the U.S., the planwill be subject to separate collective bargaining, Starbuckssaid. * Starbucks and Workers United, the union representing somebaristas, said recently that bargaining talks were to resumesoon. * The union has pressed Starbucks for better staffing, morepredictable schedules and higher pay after drawn-out contracttalks. Starbucks has said its baristas currently average $30 anhour in total pay and benefits. * The company closed underperforming stores in recentmonths, including several hundred announced last year, as partof what Starbucks called a portfolio review under CEO BrianNiccol’s turnaround strategy. * It has invested $500 million for adequate staffing duringpeak hours, since the turnaround began in September 2024, thecompany has disclosed previously. * Two proxy advisory groups warned shareholders earlier thisyear that Starbucks may be neglecting the financial andreputational risks that stem from labor disputes.

(Reporting by Juveria Tabassum in Bengaluru and Waylon Cunningham in New York; Editing by Tasim Zahid and Sriraj Kalluvila)