Starbucks Announces New Incentive Rewards Program to Create More Opportunities for Partners to Share in Success

Key Terms

collective bargaining regulatory

Collective bargaining is the process where a group of employees, usually represented by a union or elected representatives, negotiates terms of work—such as pay, hours, benefits and working conditions—with their employer. For investors it matters because the outcome affects a company’s labor costs, operational stability and risk of strikes or disruptions, similar to how a neighborhood agreeing on shared rules can change the budget and daily routines of everyone involved.

Builds on Back to Starbucks transformation to strengthen the coffeehouse experience through new partner incentive program

Provides hourly partners (employees) the opportunity to earn quarterly bonuses based on store performance and customer experience

SEATTLE--(BUSINESS WIRE)-- Starbucks Coffee Company (Nasdaq: SBUX) today announced a new incentive rewards program designed to create more opportunities for hourly coffeehouse partners to share in the success of the Back to Starbucks transformation. The program reflects Starbucks continued commitment to offering one of the most competitive total compensation and benefits packages in the industry.

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 expects this program to further strengthen alignment between incentives and the metrics that drive improvements to coffeehouse performance and operations, and the customer experience, which should offset costs related to the incentive rewards program.

More ways to earn

The program introduces a new coffeehouse performance-based bonus structure, bringing hourly partners more ways to earn, on top of existing base pay and benefits. Baristas and shift supervisors can earn up to an additional $1,200 per year ($300 per quarter) when their coffeehouse meets and exceeds certain sales, operational and customer service targets – metrics that drive growth.

Expanded access to tips

Partners will benefit from expanded opportunities to receive tips across more ordering and payment channels — including through Mobile Order & Pay and when using Scan & Pay at the register — making it easier for customers to recognize great service.

Taken together, the new bonus and expanded tipping options have the potential to increase what eligible partners receive by approximately 5–8%, on top of what they receive today.*

More frequent pay for greater flexibility

In response to partner feedback from those who do not already receive weekly pay, Starbucks will move to weekly pay for all U.S. partners, providing faster access to earnings.

Additional job promotion opportunities

In addition, Starbucks is expanding leadership opportunities within the coffeehouse through the addition of the previously announced coffeehouse coach role, with plans to introduce new positions across U.S. locations. Coffeehouse coaches are full-time members of management who, together with the coffeehouse leader, keep locations running smoothly. This role supports Starbucks commitment to fill 90% of retail leadership roles from within.

Building on competitive pay and industry-leading benefits

Today, Starbucks offers average total pay and benefits valued at more than $30 per hour for hourly partners, including comprehensive healthcare, stock awards, a paid college degree and flexible leave, all available even to part‑time partners working an average of 20 or more hours per week.

Since launching its Back to Starbucks transformation, Starbucks has invested more than $500 million in additional hours and expanded rosters so that there are more partners working during the busiest shifts. This investment in partners and their growth is driving results, including:

• Strong demand to work at Starbucks, with more than 1 million applications each year in the U.S.
• Partner sentiment continuing to improve, with a growing majority recommending Starbucks as a great place to work.
• Record high coffeehouse partner retention, with turnover nearly half the industry average.
• More coffeehouse partners getting the hours they want, with nearly 85% receiving the schedules and hours they prefer.
• Shift completion rates at all-time highs, and through an improved scheduling app, partners have picked up about 30,000 shifts a week.

Starbucks plans to begin rolling out the incentive rewards program and other tip and pay enhancements across U.S. coffeehouses starting in July 2026.

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.

* The actual amount of tips received by a tip-eligible partner can vary substantially depending upon store location, quality of service, customers served and other factors. Tips are a gratuity provided by customers at their discretion and are not guaranteed.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world’s premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at about.starbucks.com or starbucks.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260402043121/en/

Alisha Damodaran
Press@starbucks.com
206-318-7100

Source: Starbucks Corporation