Starbucks baristas will be able to earn quarterly bonuses of up to $300 this summer as part of a new program announced on Thursday.
The coffee shop giant said that employees at its 10,000 company stores will be able to earn rewards based on whether their stores reach certain performance metrics, including sales, operational and customer service targets.
Baristas and shift supervisors will be able to earn up to $1,200 per year on top of existing pay and benefits.
In addition, the Seattle-based company said that it plans to expand tipping, giving customers options to leave baristas a tip across more ordering and payment channels, including credit and debit cards on mobile order and scan-and-pay at the register.
Starbucks said that the additional tipping and bonuses could increase pay for baristas by 5% to 8% on top of what they receive today.
The company said that the program is subject to collective bargaining at the 5% of its locations, about 500 shops, that are represented by a union.
In addition to the bonuses and tips, Starbucks said that it plans to start paying baristas weekly, addressing requests by workers for faster access to pay. And the company is promising expanded leadership opportunities inside its shops to give baristas more opportunities to earn promotions.
That includes the “coffeehouse coach,” which the company recently announced. Those are full-time members of management that work with the coffeehouse leader to keep stores running smoothly. Starbucks also said that it plans to introduce more leadership positions in the U.S. and has vowed to fill 90% of its retail leadership roles from within.
Starbucks said that the average total pay and benefits are valued at more than $30 an hour, including healthcare benefits, college degrees and flexible leave policies.
Starbucks has long boasted lower-than-average turnover at its shops, due at least in part to some of the benefits the chain has offered. The company said that it gets 1 million barista applications every year.
The company has been pushing improved operations inside its coffee shops over the past year and a half under CEO Brian Niccol, believing that it is crucial to the chain’s comeback from sluggish sales.
Starbucks has increased the number of workers inside its shops, giving managers say in when to use those employees. It has taken steps to cut down on backups related to mobile orders and has vowed to get all orders fulfilled in four minutes or less.
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