Starbucks employees will soon see changes to how — and how often — they’re paid.
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The coffee giant is shifting all workers across its corporate offices and in-store staff to weekly pay, enabling new ways for customers to tip, and introducing a new performance-based bonus structure for baristas at its top stores, according to a letter sent to employees and shared with Business Insider.
Weekly paychecks will begin in August. The bonus program, set to roll out in July with its first payout in the fall, will allow baristas and shift supervisors at Starbucks’ top stores to earn up to $300 each quarter — or up to $1,200 a year — for meeting sales goals and consistently delivering a positive customer experience.
COO Mike Grams told Business Insider in January that the company was working to implement a new way to measure success by introducing in-store “shot scores” of one through five, to track stores’ performance against five key metrics: the customer experience, speed during peak times, partner scheduling, inventory, and health and safety.
The changes come as Starbucks management has restarted negotiations with its union on its first collective bargaining agreement, after 15 months of stalled talks. Business Insider reported in March that the union, Starbucks Workers United, has lowered its minimum-wage demand to $17, down from $20 in 2024.
The new bonus program will be subject to bargaining, the letter said.
In a statement to Business Insider, a spokesperson for Starbucks Workers United, which represents roughly 4% of in-store staff in the US, said that the changes to the company’s pay policies are “clearly a reaction to our organizing and demands for higher take-home pay for baristas.”
“It’s notable that these bonuses and tips will be largely out of baristas’ control,” the union statement continued. “Union Starbucks baristas have been raising the alarm on low pay, inconsistent hours, and understaffing for years.”
Read the letter Grams and Starbucks’ Chief Partner Officer, Sara Kelly, sent to the company’s staff, which it calls partners, about the pay changes below.
Partners, Today we’re announcing some exciting news to help hourly partners have more ways to share in the success of Back to Starbucks.Every day, you bring the Starbucks experience to life in our coffeehouses, from the way you welcome customers to how you support one another on shift. Those small “I’ve got you” moments are the heart of our coffeehouses. Your hard work is paying off. We are gaining momentum, and the shine is back on the Starbucks brand.More ways to share in our success We’re introducing a new program that builds on what you receive today in base pay, tips and Bean Stock:A new Back to Starbucks Partner Reward: Baristas and shift supervisors can earn up to an additional $1,200 per year ($300 per quarter) when your coffeehouse meets and exceeds certain sales, operational and customer service metrics. This reward recognizes teams that work together to deliver excellence and is part of our commitment to shared success. The program begins in July with the first payout determined this fall.More ways for customers to tip: Customers see and feel the difference in our coffeehouses and have told us they want more ways to say thank you. To make that easier, we’re expanding tipping options so customers will soon be able to tip by credit and debit card through Mobile Order & Pay and when using their app to Scan & Pay at the register.Weekly Pay: We heard from you that getting paid sooner would help, so we’re moving all U.S. partners to weekly pay beginning in August. You’ll get the money you earn, faster.Taken together, the new bonus and expanded tipping options have the potential to increase what eligible partners receive by approximately 5—8% on average, on top of what you receive today.We will start rolling out these changes across U.S. company-operated coffeehouses starting July 2026, with planned full implementation this summer. We’ll share more details with you and your coffeehouse leaders soon. We’re proud of the craft and connection you create every day, and we remain committed to supporting you on your journey with benefits like comprehensive healthcare, Bean Stock, 100% upfront tuition coverage for a bachelor’s degree, 18 weeks of paid parental leave, mental health support and more — all when you work 20 or more hours per week.This new program, at the approximately 5% of U.S. locations where partners have a union, will be subject to collective bargaining as required by federal law.More ways to grow We know the opportunity to grow a career at Starbucks is also important. We’ll soon share plans for a new Next Leadership Academy to help partners grow at Starbucks, and seize the opportunity provided by our new coffeehouse coach roles and our commitment to fill 90% of retail leadership roles from within.We’re grateful for everything you do. The care, craft and connection you bring to your coffeehouses every day are what make Starbucks, Starbucks. With appreciation, Mike and Sara
