Starbucks will raise the hourly pay for its US retail workers by at least 3% from 2024, it said, as it plans to expand its store count amid strong demand for its coffees from younger and more affluent customer base.
Last week, Starbucks said it would increase the number of stores globally to 55,000 by 2030 from 38,000, while aiming to double the hourly income of baristas over the next two years from 2020 levels through more working hours and higher pay.
The company has about 17,000 stores in North America and its US workers draw an average wage of $15 to $24 per hour and a total compensation, with benefits, of nearly $27 per hour.
It said employees with two to five years of service would be eligible for at least a 4% hike, while those with five or more years could get at least a 5% increase in pay.
'Coupled with higher wages and the expansion of hours, these investments have not only resulted in lower turnover... but have also increased hourly total cash compensation by nearly 50% since fiscal year 2020,' the company said in a statement.
Quarterly Performance
Last week, the coffee chain beat Wall Street targets for fourth-quarter results as strong demand for its pricey coffees and cold drinks in North America offset a feeble recovery in China.
The company benefited from a younger, more affluent consumer base despite the wider US restaurant industry grappling with a slowdown as sticky inflation prompts people to rethink dining out.
Traffic at the coffee chain's US locations jumped throughout the quarter, data from Placer.ai showed, boosted by the fanfare around the late-August return of its iconic fall season staple - the Pumpkin Spice Latte.
