Starbucks boosts benefits for non-union U.S. workers ahead of investor day

Starbucks announced additional methods for repaying student loans as well as a nationwide savings program. U.S. employees who do not belong to a union, the company said on Monday, despite an intensifying union effort and rising coffee demand. As of August 1, the firm increased the hourly wage for non-unionized cafe employees in the United States to an average of approximately $17.

According to BTIG analyst Peter Saleh, “we believe the recent wage hikes… are having a detrimental effect on the labor unions, with the number of stores filing for a vote decreasing to the lowest level all year in August.” Over 230 of Starbucks’ approximately 9,000 company-owned U.S. S. sites have chosen to unionize, compared to at least 48 who have chosen not to.

Analysts estimated that the business still has enough cash to cover extra perks and significant shop renovations despite having spent $1 billion on improved employee benefits in fiscal 2022, which ends in October. On its bank sheet, the chain now has around $3 billion in cash and anticipates making another $3. 5 billion in more cash next year, according to Saleh. According to analysts, the chain is still on course to achieve that projection.