
Starbucks To Prompt More Tipping On Card Payments, Fueling ‘Tip Creep’ Backlash
Starbucks is making sweeping changes to how tips and compensation work for its employees, announcing a broader tipping system alongside a new bonus program aimed at increasing barista earnings.
The Seattle-based coffee chain said it will widen the ways customers can leave tips, allowing gratuities on a larger share of credit and debit card purchases, according to Reuters.
Although tipping has already been available through the company’s app and at registers, Starbucks is now extending that option to more card transactions, including payments made through the app while inside stores.
In addition to the tipping changes, the company is introducing a new incentive program that could allow baristas and shift supervisors to earn up to $1,200 per year beyond their regular wages.
This bonus system will be tied to performance metrics such as sales and customer service goals, and is scheduled to begin in July.
Starbucks also announced a shift in its payroll schedule, with employees set to receive weekly pay starting in August, a change the company says reflects feedback from its workforce.
Workers United, the labor union representing some Starbucks employees, responded to the announcement by saying it reflects ongoing pressure from organizing efforts. In a statement obtained by Reuters, the union said the move was “clearly a reaction to our organizing and demands for higher take-home pay for baristas.”
At the same time, the union expressed concern about how much control workers actually have over these added earnings, noting that bonuses and tips are “largely out of baristas’ control.”
The company has previously said that baristas earn roughly $30 per hour on average when factoring in wages and benefits, despite the demands of a fast-paced, customer-facing environment.
Industry observers say customers are likely to notice an increase in tipping prompts going forward. Amore Philip, a New York-based public relations strategist, said consumers “should absolutely expect to see more frequent tipping prompts.”
She described the trend as part of a wider cultural shift in how tipping is used. “What’s happening here is part of a broader shift in consumer culture often referred to as ‘tip creep,’ where tipping is expanding into spaces that traditionally didn’t require it,” she told Fox News Digital.
Philip added that this trend may create discomfort or uncertainty for customers. “For customers, that can create a sense of pressure or even confusion to where consumers may be tipping for service, convenience or simply because the system is prompting you to.”
At the same time, she noted that Starbucks may be aiming to improve employee morale and customer experience through these changes.
“The tension is really about balance,” she added. “Consumers are becoming more aware of how often they’re being asked to tip, [but] if the experience feels elevated, including faster service, better interactions … customers may be more willing to participate.”
Financial experts say the move could also help Starbucks avoid raising menu prices directly. Ted Jenkin, managing partner at Exit Wealth Advisors in Georgia, said the strategy shifts more of the burden to customers voluntarily.
“The new tipping move is “an easy way for Starbucks to avoid raising prices directly,” he said.
Jenkin also questioned the growing trend of pre-service tipping. “Who wants to give a tip before you even get your latte?” he said to Fox News Digital. “That defeats the whole idea of a tip.”