Starbucks is offering its baristas up to $1,200 in annual bonuses and shifting to weekly pay as the coffee chain pushes to boost sales and improve customer service.
The company said Thursday that the bonuses are tied to whether individual Starbucks outlets meet customer service and sales goals. Moving to weekly pay should also give workers more financial flexibility, it added.
Under CEO Brian Niccol, Starbucks has sought to energize growth and boost profits after several consecutive quarters of flat or declining sales. The most recent quarter showed improvement, with same-store sales rising 4%. Analysts attribute those results to Niccol's "Back to Starbucks" turnaround plan, which includes adding new menu items and a barista dress code aimed at improving the company's image.
"As the company's Back to Starbucks transformation continues to deliver results and an improved customer experience in Starbucks coffeehouses, the new incentive rewards program recognizes partners for the progress they make possible," the company said in a statement.
Baristas can earn $300 per quarter, or $1,200 a year, in bonuses if their locations meet or exceed performance goals, which the company didn't specify. The bonus program will begin in July.
Starbucks said it is also changing its tipping program in the chain's mobile app, as well as when customers pay by scanning the app at the register, a move the company said will make it easier for customers to add a gratuity. The company estimates baristas' tips could increase by 5% to 8% because of the change.
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