Coffee giant Starbucks CEO Brian Niccol has said he will hire more baristas and scale back plans to introduce automation. What is the reorganization about?
Coffee giant Starbucks CEO Brian Niccol has said he will hire more baristas and scale back plans to introduce automation. What is the reorganization about?
«Over the last few years, we have actually laid off employees from stores. I had hoped that the equipment would be able to compensate for the layoffs. We are finding that… that was not an accurate assumption given what happened,» writes the BBC, citing Brian Niccola’s words during a call with investors.
Starbucks, like other food and beverage companies, is struggling with rising prices and trying to cut costs. On Tuesday, the company said its sales continued to fall and its financial results were worse than expected. The company’s latest financial data showed that global sales fell 1% in the three months to the end of March, its fifth consecutive quarterly decline. Starbucks shares fell more than 6,5% in extended trading after the results were released.
But while other chains are trying to do so through technology, Starbucks will hire more people as part of its strategy to bring customers back. The coffee chain has already said it will abandon the rollout of its Siren beverage preparation system, a technology and equipment system introduced in 2022 to streamline operations.
However, since September 2024, when Bryan Niccol joined Starbucks, he has been testing a staffing strategy in a few stores. This year, he plans to use this approach in about 3,000 stores.
He said the increase in staff will mean increased costs, but he «expects some growth that will come with the investment.»
Additionally, Starbucks is also updating its coffee shops, menus, and company dress code.
