Staffing

Starbucks commits to minimum wage increases

Provided

October 27, 2021

Starbucks hourly workers in the U.S. will average nearly $17 per hour next summer when the chain implements an increase to its minimum wage. All baristas will make between $15 and $23 per hour, CEO and President Kevin Johnson said in a company press release.

"This is how we continue to build a great and enduring company," he said. "One that is committed to the ideal that doing good for one another — and for society — is good for business over the long-term."

In a letter to all U.S. partners, Rossann Williams, Starbucks executive vice president, president North America, said the investments will not only increase wages but also enhance training and in-store experiences.

Other investments include:

• Effective in late January 2022, partners with two or more years of service could receive up to a 5% raise and partners with five or more years could receive up to a 10% raise.
• Training and recruiting: The company added recruiting specialists across all U.S. markets and is extending its $200 referral bonuses to help attract talent. The company is also investing in store partner training, including a complete redesign of the company's "Barista Basics" guide for partners to include added training time for all roles as well as practice shifts and looking to expand beyond its 40 training stores around the country dedicated entirely to training partners in this area.
• Employee hours and in-store experiences: With significant customer demand for Starbucks and an increasing pace of beverage innovation, Starbucks has invested in forecasting capabilities to improve store staffing; testing of a "shifts app" aiming to make it easier for partners to work available shifts that meet their personal needs; and improving behind the bar floor design and equipment, including testing a cold beverage station in select stores around the country. A team of support partners and data analysts, as well as a store manager council, are working with store partners to help shape this work.
• Partner-centered innovation: Starbucks has created a team of partners to design and test initiatives that will improve the partner experience and reduce complexity in stores. The 20,000-square-foot Tryer Lab is focused on bringing innovation and ideas to action in stores with a test and learn approach. The team, which includes a rotation of over 20 store partners, is focused on several initiatives, including behind-the-bar layout redesigns; innovative store equipment and technology and evolving operational roles in stores.

"Our founder Howard Schultz believed in the dignity of the human experience, in building a successful company, and that our success should always be shared," Williams said. "These new investments show the continued commitment we all have to creating the best opportunities and experience for our partners."