Starbucks Coffee Company (NASDAQ: SBUX) today announced a wave of investments for its partners (employees), building on its 50-year history and tradition of listening and learning, while reinvesting its success in its employees. Both operational and salary investment announcements for U.S. partners and company-operated stores are designed to retain and recruit the best people and assert Starbucks as one of the best jobs in retail – a reflection of the the company’s unwavering belief that success is best when it is shared.
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Today, Starbucks announced a wave of historic investments in its partners (employees), building on the company’s unwavering belief that success is best when shared. Both operational and salary investment announcements for U.S. partners and company-operated stores are designed to retain and recruit the best people, and assert Starbucks as one of the best jobs in retail. (Photo: Business Wire)
“As Starbucks celebrates its 50th anniversary, we are reminded that our legacy is based on the simple concept that our green apron partners are the heart of Starbucks and that success is best when shared,” said Kevin Johnson, President and CEO of Starbucks. “Today, we are announcing a historic new investment in our partners, knowing that when we take care of our partners, they take care of our customers, and all stakeholders benefit. This is how we continue to build a great and sustainable business. One who is committed to the ideal of doing good for each other – and for society – is good for long-term business.
In a letter to all US partners, Rossann Williams, Executive Vice President of Starbucks, President of North America, underscored the company’s continued commitment to listen, learn together and deliver real and measurable value to partners, customers. and shareholders. The investments the company will make will improve wages, training and in-store experiences nationwide.
Investments include:
- Unprecedented salary investments: Building on substantial investments in wages and benefits throughout the pandemic, Starbucks is prioritizing another important investment to recognize and reward titular partners while ensuring that all partners earn at the minus $ 15 / hour in the summer of 2022. This next investment culminates with a total of approximately $ 1 billion in additional investments in annual wages and benefits over the past two years.
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As of the end of January 2022, partners with at least two years of service could receive an increase of up to 5% and partners with five years or more could receive an increase of up to 10%.
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In addition, in the summer of 2022, the average salary of all US hourly partners will be close to $ 17 / hr.
- In December 2020, Starbucks pledged to increase its minimum wage to $ 15 / hr.
- Hourly barista rates will vary depending on market and seniority from $ 15 to $ 23 / hour. across the country in the summer of 2022.
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- Training and recruitment: The company has added recruiting specialists in all US markets and is extending its referral bonuses by $ 200 to help attract new talent. The company is also investing in store partner training, including a complete overhaul of the company’s “Barista Basics” guide for partners to include additional training time for all roles as well as changes to the business. practice and is looking to expand beyond its 40 highly successful training stores around the country currently fully dedicated to partner training in this area.
- Store Partner Hours of Operation and Store Experiences: With significant customer demand for Starbucks and an increasing pace of beverage innovation, Starbucks has invested in forecasting capabilities to improve store staff; testing of a “shift application” aimed at making it easier for partners to work with available shifts that meet their personal needs; and improving the design and equipment of the bar’s floor, including testing a cold beverage station in select stores across the country. A team of support partners and data analysts, along with a board of store managers, work side-by-side with our store partners to help shape this work.
- Partner-centric innovation: Finally, to ensure continuous improvements for retail partners, Starbucks has assembled a team of partners to design + and + test initiatives that will ultimately improve the partner experience and reduce complexity in business. stores. The 20,000 square foot Tryer Lab focuses on bringing new innovations and ideas to stores with a test and learn approach. This team, which includes a rotation of over 20 of our talented store partners, is focused on several initiatives, including 1) redesigning the layout behind the bar 2) innovative store equipment and technology, and 3 ) changes in operational roles in stores. This partner-driven effort helps hold support partners accountable for the in-store experience, with real-life challenges being engineered by help desk and store partners, together, working side-by-side.
“Our founder Howard Schultz believed in the dignity of the human experience, in building a successful business, and that our success should always be shared,” said Williams. “These new investments show the continued commitment we all have to creating the best opportunities and experiences for our partners.”
With innovative benefits for part-time employees including healthcare, equity participation at all levels of the organization, free tuition through the Starbucks College Achievement Plan with Arizona State University and a Supporting mental health through a partnership with Lyra, Starbucks has been on the forefront of investing in its people since the original store opened in Seattle’s Pike Place Marketplace in 1971. L The introduction of these latest investments builds on unprecedented partner investments specifically designed to support partners during the COVID-19 pandemic.
Forward-looking statements
Certain statements contained in this document are “forward-looking” statements within the meaning of applicable securities laws and regulations. Typically, these statements can be identified by the use of words such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “anticipate”, “have l ‘intention’, “could”, “prospect”, “plan”, “) and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to: our investments in labor; our business outlook, projections and directions; financial operations and results; our sustainability goals and initiatives; the resumption of our activity; and our ability to drive long-term growth. These forward-looking statements do not represent historical data, are based on currently available operational, financial and competitive information and are subject to a number of important risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the actual impact of our workforce investments on our operations and financial results; continued spread of COVID-19 and its variants; regulatory measures or voluntary actions that can be put in place to limit the spread of COVID-19, including vaccine mandates and restrictions on business operations or social distancing requirements and the duration and effectiveness of those restrictions and the global distribution and acceptance of vaccines; the potential for COVID-19 infections to re-emerge in a given geographic region after reaching its “peak”; fluctuations in US and international economies and currencies; our ability to preserve, develop and operate our brands; the ability of our business partners and third party providers to meet their responsibilities and commitments; the potential negative effects of incidents involving food or drink-borne illness, adulteration, adulteration, contamination or mislabelling; the potential negative effects of material breaches of our information technology systems to the extent that we suffer a material breach; hardware failures in our computer systems; associated costs and successful execution of corporate initiatives and plans, including the successful expansion of our Global Coffee Alliance with Nestlé; our ability to obtain financing on acceptable terms; acceptance of the Company’s products by our customers, changing consumer preferences and tastes and the availability of consumer finance; changes in the availability and cost of labor; a significant increase in logistics costs, including, but not limited to, inflationary pressures; the impact of competition; the risks inherent in operating a global business; the prices and availability of coffee, dairy products and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidelines and regulations that may be implemented and other risks detailed in the documents filed by the company with the Securities and Exchange Commission, including the “Risk Factors” sections. Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2020 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 27, 2021. The Company assumes no obligation to update the any of these forward-looking statements.
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