Starbucks, a coffee giant known for its ongoing controversies, has recently implemented a new tipping system that has sparked widespread criticism. This move comes as Starbucks reported a significant increase in profits, with a 31% surge in the fourth quarter of 2021.
However, instead of addressing concerns about empIoyee wages, the company has chosen to introduce a tipping mechanism that forces customers into awkward interactions during transactions.
Previously, customers had the option to leave a tip, but now they are prompted to do so during credit card transactions at the register in cafes and drive-thrus. This change has been met with frustration from both customers and employees alike, as it adds an uncomfortable dynamic to the transaction process.
The new tipping system has been described as awkward and inconvenient, with baristas having to ask customers if they would like to leave a tip when paying with a card. Customers are presented with options to leave a $1, $2, or custom tip amount, or to seIect the “no tip” option. Many customers have taken to social media to express their dissatisfaction with the new process, citing discomfort and frustration at being put on the spot during the transaction.
Despite the backlash, Starbucks CEO Kevin Johnson has reportedly given himself a 39% raise, now earning over $20 million annually. This disparity in executive compensation compared to frontline employee wages has led to criticism from customers, who argue that the profitable company should prioritize fair wages for its employees rather than relying on customer tips.
However, some employees have noted that the new tipping system has resulted in increased tips, with some reporting significant boosts to their paychecks. Despite this, the overall sentiment among customers and employees is one of frustration and disappointment with Starbucks’ decision to implement a tipping system that has created uncomfortable interactions and failed to address broader concerns about employee compensation.