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Starbucks to Invest $1 Billion in Employee Pay and Training

Starbucks to Invest $1 Billion in Employee Pay and Training

Starbucks founder and CEO Howard Schultz announced the coffee chain will raise employee starting pay to $15 an hour and the company will make total investments to nearly $1 billion in this fiscal year alone for pay and increased training. This will allow Starbucks to meet record customer demand and partner (employee) needs in an operating environment deeply impacted by COVID. 

Starbucks is the world's leading coffee chain with 34,000 stores worldwide.

Schultz announced the following investments designed to transform and elevate the experience of Starbucks partners and customers – all co-created by retail and non-retail partners working together.

  • The return of the Coffee Master and Black Apron programs this Summer, reaffirming and recognizing Starbucks partners deep passion for—and commitment to—coffee excellence. Additionally, eligible partners who complete the Coffee Master program will have the chance to be selected for the Leadership in Origin program at Hacienda Alsacia, Starbucks coffee farm in Costa Rica. 
     
  • More opportunities for partners to connect, be heard and have a voice, through the launch of a new partner app in August to create one digital community for all 240,000 U.S. partners, extending collaboration sessions to support partners, plants, retail leaders and to every store with dedicated connection time over the next month.
     
  • Additional and more effective training, including doubling the amount of training time for new baristas beginning June 21, doubling the amount of training time for new shift supervisors beginning August 30, and more training for baristas and supervisors already in role. Enhancements also include a redesigned “First Sip” barista training program, a newly designed shift supervisor program and more hands-on practice time for baristas.  
  • Increased pay and support with financial stability. As previously announced, Starbucks is moving all U.S. store partners to a $15/hour floor this summer, effective August 1, and also adding incremental increases that will apply to all U.S. store partners, while recognizing and rewarding tenure. On August 1, average hourly pay at Starbucks will be nearly $17/hour nationally. All partners hired on or before May 2 will get either a 3% raise or $15/hour, whichever is higher.

    Further, Starbucks will continue to recognize tenured partners. Partners with 2-5 years of service will receive at least a 5% increase or move to 5% above the market start rate, whichever is higher. Partners with 5+ years of service will receive at least a 7% increase or move to 10% above the market start rate, whichever is higher.

    On August 1, Starbucks will also double our planned investments in store manager, assistant store manager and shift manager pay for leaders hired on or before May 2. These are one-time investments in base pay in addition to our planned FY23 raises this fall.
  • Continuing to build and offer relevant benefits based on partner ideas and input, including opportunities to increase sick time accrual, implementing a new financial stability toolkit benefit, and implementing tools and solutions to help partners refinance better student loan solutions.  

Starbucks will also make investments in the following areas: 

  • Introduction of credit card / debit card tipping by late 2022 as ways for customers to further recognize their favorite baristas.
  • Equipment and technology enhancements, including resolving all “non-critical” repair and maintenance immediately, moving to upgrade all in-store iPads with new models, accelerating rollout of new equipment like MerryChef Ovens and Mastrena 2 espresso machines and more. 
  • Launching a modernized recognition program and expanding a portfolio of upskilling and career mobility programs.