U.S. — Starbucks announced it will switch all U.S. corporate office and in-store employees to weekly paychecks beginning in August 2026, according to a letter sent to employees. The company also outlined a new performance-based bonus program and expanded digital tipping options set to roll out across its U.S. company-operated coffeehouses beginning in July 2026, with full implementation planned for the summer.

Under the bonus program, baristas and shift supervisors at top-performing stores can earn up to $300 each quarter by meeting sales and customer experience targets, for an annual maximum of $1,200 per partner. The bonuses are intended to incentivize faster service and improved customer friendliness. The company estimated that the combined effect of the bonus program and expanded tipping options could increase eligible partners' average pay by approximately 5 to 8 percent. The bonus program is subject to collective bargaining at unionized Starbucks locations under federal law.

The expanded digital tipping options will allow customers to tip by credit and debit card through Mobile Order & Pay and the app's Scan & Pay feature at the register, according to the employee letter. The bonus program will roll out in July 2026, with its first payout in the fall of 2026.

The bonus and tipping changes follow the company's development of new in-store performance measurement tools. Chief Operating Officer Mike Grams said in January 2026 that Starbucks was working to implement in-store performance ratings ranging from one through five to measure store performance. The scores assess five key metrics: customer experience, speed during peak times, partner scheduling, inventory, and health and safety.

Starbucks management restarted negotiations with its union on a first collective bargaining agreement after 15 months of stalled talks. The union lowered its minimum-wage demand from $20 in 2024 to $17 in March 2026.

The compensation changes are part of a broader effort led by CEO Brian Niccol, who took the role in 2024 after serving as CEO of Chipotle. Starbucks has invested approximately $500 million in staffing and store operations, including adding more workers during peak hours. The company aims to restore its profit margins to as high as 15 percent by 2028.

In its most recent quarter, Starbucks reported revenue of $9.9 billion and net profit of $293 million, down from $780 million a year earlier. The company's profit margins shrank as it faced rising labor costs, inflation, and restructuring charges. Starbucks also recorded a one-time $266 million tax charge related to changes in the accounting of its China business. The company posted 4 percent comparable sales growth and increased customer traffic in the same period.