Starbucks (SBUX) on Thursday released a new incentive for baristas to write a friendly note of encouragement on your next cup of coffee.
The company said baristas and shift supervisors are now eligible to earn an additional $1,200 annual bonus, or $300 per quarter, “when their coffeehouse meets and exceeds certain sales, operational and customer service targets — metrics that drive growth.” The update will take effect in July with the first payout this fall.
The update also expands tipping options so customers can tip by credit or debit card when ordering on their phone or through the app at the register.
Both incentives could increase employees’ pay by roughly 5% to 8% on average, on top of their hourly pay, COO Mike Grams and chief partner officer Sara Kelly said in a memo to employees sent on Thursday. US workers will also receive their paycheck on a weekly basis.
Stores that are unionized, which make up of 5% US locations, won’t see the same incentive right away.
“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,” Grams and Kelly said in the memo.
This comes as CEO Brian Niccol tries to make progress in his turnaround of the 55-year-old chain after years of lackluster results. In its fiscal first quarter, the company posted its first quarter of North America and US same-store sales growth in two years.
US and North America same-store sales rose 4%, topping Wall Street estimates for a 2% rise based on Bloomberg data. The increase was driven by a 3% increase in comparable transactions and a 1% increase in the average ticket.
At the time, Niccol told investors, “It is clear from our top line results that our back to Starbucks plan is working, and our turnaround is taking hold.”
Starbucks stock is up just less than 8% this year.
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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