Starbucks CEO Brian Niccol plans to significantly improve the company's parental leave for US store partners.

From March 2025, Starbucks will substantially increase paid parental leave, with birth parents receiving up to 18 weeks of full pay and non-birth parents up to 12 weeks.

The initiative is part of the Back to Starbucks plan, aimed at making the company a leading retail employer.

The enhancement of parental leave is a response to partner feedback.

"It caught my attention. I followed up with the team, and then we reached out to a few more partners," Niccol told FOX Business Digital. He decided that "this is one we can take action on."

The move sets Starbucks apart in the retail sector, as Niccol stated: "No other retailer offers a better parental leave benefit for new parents."

Starbucks is also focusing on providing a range of competitive benefits. The company has recently committed to promoting 90% of retail leadership from within, offering a clear path for career advancement.

The Starbucks College Achievement Plan (SCAP) continues to offer 100% tuition coverage for online degrees, with a new class of scholars graduating in December 2024. So far, 15,000 partners have graduated from the programme, and another 25,000 are in progress.

Financial incentives are also a key part of Starbucks' benefits package. In December 2024, 230,000 partners received Bean Stock grants, contributing to the $2.4bn in company stock allocated to partners since the programme's inception.

Health and wellbeing benefits include part-time workers.

Improving scheduling and increasing the minimum hours worked per week to 24 are further goals for the brand.

Niccol acknowledges the challenges in aligning staffing with the ebb and flow of business needs, providing stable schedules for partners while ensuring that stores are appropriately staffed during peak periods.