Starbucks (NASDAQ:SBUX) will raise the hourly pay for its U.S. retail workers by at least 3% from 2024, it said on Monday as it plans to expand its store count amid strong demand for its coffees from a younger and more affluent customer base.
The company had last week 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.
It has about 17,000 stores in North America and its U.S. workers draw an average wage of $15 to $24 per hour and a total compensation, with benefits, of nearly $27 per hour.
The company 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.
The retail coffee company is also holding its first North America Barista Championship kicking off this February, Starbucks partners will have the opportunity showcase the unique role they play in bringing the Starbucks experience to life for customers each day, demonstrating their commitment to connection, craft and community.
SBUX shares perked 78 cents to $103.43.
