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Starbucks plans to give salaried employees from store managers to corporate workers a 2% raise across the board this year.
All the coffee chain‘s salaried employees in North America are set to get the raise, the company confirmed to Business Insider. That’s a change from previous years, when managers weighed in on how much of a raise their salaried direct reports got.
The 2% raise doesn’t apply to hourly workers, such as store baristas. Bloomberg earlier reported on the raise.
Starbucks has spent nearly a year attempting a turnaround with CEO Brian Niccol at the helm. Niccol previously helped improve financial results at Mexican grill chain Chipotle as the company dealt with the aftermath of food-poisoning incidents and the pandemic.
Now, Niccol is trying to return Starbucks to growth with his Back to Starbucks plan.
Under his leadership, the Seattle-based chain has laid off corporate workers, invested in more shifts for baristas, and changed its bathroom-access policy.
As it spends money on some of those changes, Starbucks is trying to manage its other costs, the company spokesperson told Bloomberg about this year’s 2% raise, and confirmed to Business Insider.
This spring, Starbucks executives said that they planned to use zero-based budgeting, which asks managers to justify costs instead of using the previous year’s budget as a starting point.
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The post Starbucks has a new plan for raises: a flat 2% pay hike for salaried staff appeared first on Business Insider.
