Starbucks will provide a modest 2% hike to all salaried employees in North America this year, the company told Reuters on Monday, as the coffee chain tries to keep a tight lid on costs as part of CEO Brian Niccol's turnaround efforts.

Starbucks will give all salaried employees in North America a 2% raise this year, a shift from previous increases that were decided at managers’ discretion. It’s part of a turnaround effort that includes better service,