Starbucks is extending its baristas the chance to earn $300 quarterly bonuses, on top of other changes meant to sweeten the retail employee experience.

The Seattle-based coffee giant debuted its new incentive rewards program for hourly coffeehouse employees Thursday morning.

The bonuses for baristas and shift supervisors will be based on performance. Employees could earn an extra $1,200 annually if their stores meet and exceed sales, operational and customer service goals, per the announcement.

“This reward recognizes teams that work together to deliver excellence and is part of our commitment to shared success,” Chief Operating Officer Mike Grams and Chief Partner Officer Sara Kelly wrote in a letter to employees Thursday.

Starbucks said the program is “subject to collective bargaining as required by federal law” at the U.S. stores that belong to the union.

Starbucks Workers United, the union representing thousands of baristas, said the news is “clearly a reaction to our organizing and demands for higher take-home pay for baristas.”

Starbucks estimates 5% of U.S. stores are represented by the union.

For nonunionized stores, the change will take effect in July.

That month, employees will also begin receiving tips from additional ordering and payment methods, such as credit and debit cards for mobile order and pay. At present, workers can only get tips in cash or through Starbucks card payments used at point of sale and for drive-thru orders.

Starbucks estimates the combination of bonuses and tipping alternatives could boost earnings for employees by 5%-8%.

However, Workers United said: “It’s notable that these bonuses and tips will be largely out of baristas’ control, relying on customer tipping and store performance metrics as determined by Starbucks management.”

Other adjustments are part of the upcoming rollout.

In August, the company will transition to weekly pay for all U.S. employees in response to feedback. Starbucks currently operates on a biweekly schedule.

Starbucks will also begin hiring for a new position: coffeehouse coaches, described as “full-time members of management who, together with the coffeehouse leader, keep locations running smoothly” by the company. It plans to fill 90% of retail leadership positions with internal candidates.

The company projects that its average total pay and benefits equate to over $30 per hour for hourly employees when they work 20 hours or more each week.

Workers United said there are still larger issues to address.

“Here’s the reality of working at Starbucks: stores are understaffed, baristas are struggling to get by, and lack critical on-the-job protection,” the union said. “Baristas have to rely on SNAP and Medicaid, often struggling to get enough hours to pay rent or qualify for healthcare.”

The latest developments are part of CEO Brian Niccol’s Back to Starbucks plan, which puts the focus on the coffeehouse experience.

However, over the past six months, news has largely revolved around store closures: five in Seattle so far this year and more than 30 across Washington last year. The latter was part of a larger slew of coffeehouse shutterings, which affected hundreds of stores around North America.

Layoffs also hit Starbucks last year, with 974 employees— both retail and nonretail workers — who lost their jobs in Seattle and Kent. The local store closures led to the layoffs of 369 retail employees across the state after a separate round in February 2025, in which 1,100 corporate employees were laid off.

The contentious relationship between Starbucks and the union persists after baristas at more than 200 coffeehouses around the U.S. went on strike in November. They pressed the company for more hours, a bump in take-home pay and the resolution of labor law violations.

Most of the striking workers returned to their jobs in December, and union contract bargaining is at a standstill.

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