Starbucks announced plans to expand tipping options for U.S. baristas when customers pay with credit or debit cards for mobile orders. The coffee giant currently restricts tipping to in-store, drive-through, and Starbucks card mobile transactions. The Seattle-based company aims to increase barista compensation as part of its ongoing chain turnaround strategy.

Starbucks will introduce performance bonuses for baristas whose stores meet sales, operations, and customer satisfaction targets. Top-rated baristas can earn $300 quarterly bonuses, equivalent to $1,200 annually. These incentives represent the company's effort to reward exceptional service amid growing competitive pressures in the coffee industry.

The expanded tipping and bonus structure should increase barista compensation by 5% to 8%. Starbucks plans to implement these changes in company-owned stores starting July. The coffee chain faces pressure to improve worker satisfaction amid unionization efforts and rising competition from rivals.