Starbucks to workers: College is on us

Starbucks got high marks last June when it announced the company would provide partial tuition reimbursement for employees enrolled in Arizona State's online degree program for their freshman and sophomore years. The coffee chain also said it would fully reimburse employees for successfully completing their last two years in any of 49 undergrad programs offered by the university. Now, the coffee chain has decided it can do better and announced it will make full tuition reimbursement available to more than 140,000 employees in the U.S. as part of the expanded Starbucks College Achievement Plan. "Everyone deserves a chance at the American dream," said Howard Schultz, chairman and CEO of Starbucks, in a statement. "The unfortunate reality is that too many Americans can no longer afford a college degree, particularly disadvantaged young people, and others are saddled with burdensome education debt. By giving our partners access to four years of full tuition coverage, we will provide them a critical tool for lifelong opportunity. We're stronger as a nation when everyone is afforded a pathway to success." According to Starbucks, nearly 2,000 employees have enrolled in the ASU program to date. The company is looking for at least 25,000 of its workers to graduate with their bachelor degrees over the next 10 years. Starbucks expects to invest $250 million in the effort.

Starbucks' announcement comes in an environment where others in retail and foodservice — including Gap, McDonald's, Target, T.J. Maxx and Walmart — have sought to burnish their credentials as employers with pay raises and improved benefits. Recently Gap's global head of human resources said the company's announced pay raise was the only action it has taken that resulted in an increase in job applications at the chain. The company expects that having a better pool of candidates to choose from will eventually result in better performance, as well.

• Starbucks and ASU Offer Unprecedented Four Years of College Education with Full Tuition Coverage - Starbucks
• Starbucks Will Pay Full Tuition For Workers to Take Online College Program - Bloomberg
• Gap waiting to see if wage boost lifts sales - The Washington Post/Arkansas Online
• Starbucks finds smart way to attract and retain workers - RetailWire