Market Data 
- Starbucks is expanding its paid parental leave policy for baristas, the latest change under its new CEO.
- It’ll offer up to 18 weeks of paid parental leave for birth parents and 12 weeks for nonbirth parents.
- However, baristas will reportedly get smaller raises this year due to the company’s performance.
Starbucks is giving baristas up to three times the paid parental leave they previously had access to.
Starting in March, the coffeehouse giant said it will offer up to 18 weeks of paid leave for birth parents and up to 12 weeks for nonbirth parents.
The expanded benefit applies to US store employees averaging at least 20 hours of work a week. In general, Starbucks’ parental leave policy applies to parents welcoming children by birth, foster placement, or adoption.
The company currently offers US store employees 6 weeks of paid parental leave and up to 12 weeks unpaid.
“Our benefit was already the best in retail, but after hearing from some partners who shared the leave as new parents wasn’t adequate, we reviewed the program and have decided we’re making a change,” the chain’s new CEO, Brian Niccol, wrote in his announcement Monday.
The expansion is the latest change amid Starbucks’ turnaround effort under Niccol, who took over in September after leading Chipotle, which offers its workers up to 12 weeks of paid parental leave. Starbucks retail employees trying to unionize at various stores across the country have named increased parental leave as one of their requests.
It’s been a tough year for the chain, which saw sales decline in multiple quarters. In its fiscal fourth quarter, the company reported its steepest quarterly sales drop in four years.
On the heels of the company’s disappointing quarterly reports, baristas will reportedly get smaller raises this year compared to last and many corporate employees will only get 60% of their bonuses, Bloomberg recently reported. Starbucks did not immediately respond to a request for comment.
Shortly after becoming CEO, Niccol, whose pay package includes up to $113 million in total compensation, wrote an open letter about his plan to improve the business.
“A visit to Starbucks is about connection and joy, and of course great coffee. Many of our customers still experience this magic every day, but in some places — especially in the U.S. — we aren’t always delivering,” he wrote. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”
