Starbucks is widening its tipping policy, allowing customers who pay with credit or debit cards for mobile orders to leave a tip. Previously, tipping was limited to in‑store, drive‑through cash or card purchases and mobile transactions using Starbucks cards. The change targets the growing mobile‑order segment in 2024. This shift aims to boost barista income and customer experience.

Alongside tipping, Starbucks will roll out quarterly bonuses for store teams hitting sales, operations and customer‑satisfaction targets. Staff who reach the top internal rating can earn a $300 bonus each quarter, or $1,200 annually. The company estimates the new scheme will lift barista pay by 5% to 8%, depending on tipping levels for the company.

The initiative launches next month in Starbucks’ company‑owned U.S. locations, part of CEO Brian Niccol’s turnaround plan to raise sales through superior service. By tying tips and bonuses to performance, the chain hopes to energize frontline staff and improve customer experience. Investors will watch whether the pay bump translates into higher foot traffic and revenue.

The move signals Starbucks’ willingness to invest in human capital amid a competitive coffee market. If successful, the compensation boost could set a new industry standard for barista earnings and pressure rivals to follow suit. For now, the company’s focus remains on delivering consistent service quality while tightening margins for the next quarter and beyond.