Starbucks CEO says the worker shortage plaguing restaurants won't hurt the coffee chain because its employees' 'energy and spirit is high'
- Starbucks executives say the company isn't feeling the effects of a major labor shortage.
- Starbucks has some of the best benefits in the quick-service food industry.
- Chains like McDonald's and Taco Bell are struggling to hire even with added perks.
The service industry is desperately trying to lure back workers with hiring events and added perks, but Starbucks says the company isn't feeling those effects.
While the coffee chain is seeing labor shortages in "certain markets at certain times," there's no widespread issue, Rossan Williams, president of US retail, said on an earnings call Tuesday. Meanwhile, nearly half of US restaurants say they're "severely understaffed" as COVID restrictions loosen and business picks back up.
Starbucks leadership credits strong employee benefits for keeping the company out of the major labor shortage experienced by other fast food restaurants.
"Our retention numbers are good. Our partners' energy and spirit is high" CEO Kevin Johnson said on the call. "We decided to give our partners economic certainty through that period. We did not do any involuntary layoffs or furloughs. We paid our partners whether they came to work or stayed home."
In March 2020, Starbucks temporarily moved to a drive-thru and delivery only model at all US and Canada locations. The company paid workers for the 30 day period even if they didn't come in, along with catastrophe pay, mental health and sick pay benefits, and support for childcare. These benefits included 20 free annual sessions with a mental health professional and a service that allows workers to be reimbursed up to $125 per day for childcare costs.
Even before the pandemic, Starbucks often made lists of companies with the best perks. It famously partnered with Arizona State University to offer full tuition coverage to employees, and nearly 6,000 students have graduated to date. Employees who work at least 20 hours a week are also eligible for health insurance, paid parental leave, and coverage for fertility benefits and transgender procedures. Employees also get stock options.
Some Starbucks employees are vocal about preferring higher wages and fully staffed stores over other benefits: "We didn't ask for a meditation app, we want to be able to pay our rent," an employee in Washington state told Insider last year.
Still, Starbucks offers benefits that are relatively rare in the world of hourly fast food jobs.
'We're in a position right now where I think our partners appreciate what we've done, and we have great respect and appreciation for our partners" Johnson said.
Do you work at Starbucks? Email this reporter at mmeisenzahl@businessinsider.com.