Financing

Starbucks is giving employees extra pay for the next month

Workers who continue to come to work at the chain’s open locations will get an extra $3 an hour in "service pay" through April 19.
Photograph by Jonathan Maze

Starbucks is increasing the rate it pays its employees over the next month in locations that remain open as the Seattle-based coffee giant continues to evolve its response to both workers and customers during the coronavirus shutdown.

The company said Sunday that employees who work their shifts through April 19 are eligible for Starbucks Service Pay, worth an additional $3 an hour.

The higher pay follows the company’s decision to continue paying all employees catastrophe pay for the next month, even when they do not come in for their shifts.

The decision, revealed in an update on the company’s website Sunday, continues Starbucks’ rapidly evolving response to the coronavirus.

“It is the responsibility of every business to care for its employees during this time of uncertainty, shared sacrifice and common cause,” CEO Kevin Johnson said in a statement. “I hope to see many business leaders across the country doing all they can to retain jobs, pay employees, continue benefits, and demonstrate compassion as they make critical decisions.”

Starbucks was the first major restaurant chain to end dine-in service at its locations, and on Friday, amid some pressure from workers, it closed off its restaurants to customers altogether.

That decision closed numerous Starbucks locations across the country that do not have drive-thru windows. Nearly all Starbucks locations that have drive-thru windows opened for business Saturday, the company said.

Starbucks said it is working with employees impacted by the store closures or adjusted hours by shifting them to other locations or providing catastrophe pay. It is also providing free counseling and has expanded its child care program for employees who need it as a result of school closures.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Why Starbucks needs to change its marketing

The Bottom Line: Brian Niccol’s 100-day vision for his new company included an important comment: “We won’t let others define who we are.” That’s a key change for the coffee shop giant.

Emerging Brands

Carvel finds an unusual partner in Houston fine-dining operator Berg Hospitality

The two operations have collaborated on a co-branded venture called Buttermilk Baby, the first of 10 that are planned for Texas.

Financing

TGI Fridays' would-have-been buyer gets a harsh lesson

The Bottom Line: Hostmore, the U.K. franchisee that has backed off its purchase of the casual-dining chain, cannot sell its restaurants for their debt. Welcome to the modern market for restaurant mergers and acquisitions.

Trending

More from our partners