Making Starbucks the “unrivaled best job in retail” is key pillar of its core Back to Starbucks plan.
In a Dec. 16 website post, CEO Brian Niccol shared the coffee roaster and retailer’s plan to double paid parental leave for U.S. employees who work an average of 20 hours or more per week. Starting in March, birth parents will receive up to 18 weeks of fully paid leave, and non-birth parents will receive up to 12 weeks of leave at full pay.
Boasting Better Benefits
In today’s tight labor market, the coffee roaster and retailer is emphasizing its employee benefits including:
- Competitive pay
- Starbucks College Achievement Plan (SCAP) that covers 100% of tuition for an online degree.
- Healthcare coverage and wellbeing benefits including for part-time work
- Bean Stock grants that give employees ownership stake in the company
- Helping employees to manage student loan debt through Tuition.io
“The experiences we craft for our customers begin and end with our green apron partners. That’s why, as we get back to Starbucks, we’re making Starbucks the unrivaled best job in retail, whether it’s career, college or family, we’re giving our partners unmatched opportunity to grow their career with us as we hire from within for 90% of retail leadership roles … At Starbucks, we’re making it clear that when you put on the green apron, you’re making your future possible. That’s because, supporting our people is just good business, and it fuels our shared success,” said Niccol in a video message.
Starbucks’ move comes as hospitality companies of all sizes continue to struggle with workforce issues. Many report that their biggest concern is maintaining staffing levels, with 75% citing concerns about delivering a consistent customer experience during the holiday rush, according to recent seasonal hiring frontline manager data from Axonify. The fear is particularly prominent in the hospitality sector, where managers are also grappling with burnout among their teams. In fact, 70% of frontline managers are worried that understaffing will lead to employee exhaustion, further impacting their ability to meet customer expectations, writes Carol Leaman, Co-Founder and CEO of Axonify, in this HT exclusive.
A New Leader, A Renewed Vision
Starbucks’ moves come on the heels of Niccol, formerly the CEO of Chipotle Mexican Grill, joining the coffee company in September. He shared the initial Back to Starbucks plan that focuses on four key areas. The strategy includes investments in technology to enhance the partner and customer experience, streamline the supply chain and evolve its app and mobile ordering platform.
A Win for Dairy-Free Customers
Last month, Starbucks announced the elimination of its surcharge for milk alternatives in U.S. and Canadian markets. The change addresses growing consumer demand for plant-based options, as substituting non-dairy milk—whether soymilk, oatmilk, almondmilk, or coconutmilk—is the second most requested customization at Starbucks, trailing only adding a shot of espresso. Nearly half of Starbucks’ U.S. customers who pay for beverage modifications will now see a price reduction of more than 10%.
“I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” said Niccol in a statement. “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”
