Starbucks plans to spend more on baristas while putting the expansion
of a three-year-old café technology system on ice, as it emphasises
labour over gadgets as a way to bring customers back to stores.
The US-based coffeehouse chain on Tuesday reported a 2 per cent
year-on-year increase in quarterly revenue to $8.8bn — in line with expectations — but a 50 per cent slide in net income to $384.2mn.
Analysts polled by Visible Alpha had predicted quarterly profits of
$551mn.
Under chief executive Brian Niccol, who took charge in
September, Starbucks has sought to reverse a sales slump that has now persisted for more than a year.
Niccol, a former Taco Bell and Chipotle Mexican Grill executive, has
sought to reduce customers’ wait times, simplify menus and restore the welcoming coffeehouse feel that was lost as more business moved online
during the Covid-19 pandemic.
“We’re finding through our work that investments in labour rather than equipment are more effective at improving throughput and driving
transaction growth,” he told analysts.
Meanwhile, he said the company would pause the rollout of parts of the
Siren Craft System, a technology to streamline café operations that was unveiled in 2022.
“Over the last couple of years, we’ve actually been removing labour from the stores, I think with the hope that equipment could offset the removal
of the labour,” Niccol told analysts.
“And think what we’re finding is that was just — that wasn’t an accurat
assumption with what played out.”
Starbucks has 361,000 employees
worldwide, most of them in cafés.
Baristas have complained of being overwhelmed juggling in-store and online orders at the busiest times of day, while customers have been frustrated
by long wait times.
Investment to improve cafés is coming at a cost: Starbucks said store operating expenses rose 12.1 per cent to $4.2bn in the quarter. The
company said additional labour in support of Niccol’s “Back to Starbucks” strategy was one reason why store expenses ate into profitability.
Starbucks said it opened 213 net new stores in the second quarter, bringing its total worldwide to 40,789. Cathy Smith, chief financial officer, said: “While we have solid new store economics, we have room for improvement and are evaluating our global store portfolio and new store pipeline.
”
Shares of Starbucks fell by almost 7 per cent following the earnings call
in after-market trading.
Niccol acknowledged that the results were disappointing, but said his turnaround efforts would take time to pay off. “Our financial results don’t yet reflect our progress, but we have real momentum with our ‘Back to Starbucks’ plan,” he said in a video message.
Starbucks is facing an
increasingly difficult challenge as consumers signal caution in the face
of US President Donald Trump’s trade wars.
https://www.ft.com/content/fc867e34-ae2a-4f29-874d-4d47d2162869
On 2025-04-30, Prius Pilots R Stoopid <prius.pilots.r.stoopid@yahoo.com> wrote:
Starbucks plans to spend more on baristas while putting the expansion
of a three-year-old café technology system on ice, as it emphasises
labour over gadgets as a way to bring customers back to stores.
The US-based coffeehouse chain on Tuesday reported a 2 per cent
year-on-year increase in quarterly revenue to $8.8bn — in line with
expectations — but a 50 per cent slide in net income to $384.2mn.
Analysts polled by Visible Alpha had predicted quarterly profits of
$551mn.
Under chief executive Brian Niccol, who took charge in
September, Starbucks has sought to reverse a sales slump that has now
persisted for more than a year.
Niccol, a former Taco Bell and Chipotle Mexican Grill executive, has
sought to reduce customers’ wait times, simplify menus and restore the
welcoming coffeehouse feel that was lost as more business moved online
during the Covid-19 pandemic.
“We’re finding through our work that investments in labour rather than >> equipment are more effective at improving throughput and driving
transaction growth,” he told analysts.
Meanwhile, he said the company would pause the rollout of parts of the
Siren Craft System, a technology to streamline café operations that was
unveiled in 2022.
“Over the last couple of years, we’ve actually been removing labour from >> the stores, I think with the hope that equipment could offset the removal
of the labour,” Niccol told analysts.
“And think what we’re finding is that was just — that wasn’t an accurat
assumption with what played out.”
Starbucks has 361,000 employees
worldwide, most of them in cafés.
Baristas have complained of being overwhelmed juggling in-store and online >> orders at the busiest times of day, while customers have been frustrated
by long wait times.
Investment to improve cafés is coming at a cost: Starbucks said store
operating expenses rose 12.1 per cent to $4.2bn in the quarter. The
company said additional labour in support of Niccol’s “Back to
Starbucks” strategy was one reason why store expenses ate into
profitability.
Starbucks said it opened 213 net new stores in the second quarter, bringing >> its total worldwide to 40,789. Cathy Smith, chief financial officer, said: >> “While we have solid new store economics, we have room for improvement and >> are evaluating our global store portfolio and new store pipeline.
”
Shares of Starbucks fell by almost 7 per cent following the earnings call
in after-market trading.
Niccol acknowledged that the results were disappointing, but said his
turnaround efforts would take time to pay off. “Our financial results
don’t yet reflect our progress, but we have real momentum with our ‘Back >> to Starbucks’ plan,” he said in a video message.
Starbucks is facing an
increasingly difficult challenge as consumers signal caution in the face
of US President Donald Trump’s trade wars.
https://www.ft.com/content/fc867e34-ae2a-4f29-874d-4d47d2162869
What kind of idiot actually buys coffee from Starbucks?
The coffee sucks and is way overpriced.
On another note I was in NYC, Manhattan for you non natives
and I picked up a BEC and with a small coffee it cost me $21.00
which is insane.
On another note I was in NYC, Manhattan for you non natives
and I picked up a BEC and with a small coffee it cost me $21.00
pothead wrote:
On another note I was in NYC, Manhattan for you non natives
and I picked up a BEC and with a small coffee it cost me $21.00
wot's a BEC? Bose Einstein Condensate?
On 2025-05-02, Gronk <invalide@invalid.invalid> wrote:
pothead wrote:
On another note I was in NYC, Manhattan for you non natives
and I picked up a BEC and with a small coffee it cost me $21.00
wot's a BEC? Bose Einstein Condensate?
NYC slang for Bacon Egg and Cheese, usually on a roll.
On 2025-05-02, Gronk <invalide@invalid.invalid> wrote:
pothead wrote:
On another note I was in NYC, Manhattan for you non natives
and I picked up a BEC and with a small coffee it cost me $21.00
wot's a BEC? Bose Einstein Condensate?
NYC slang for Bacon Egg and Cheese, usually on a roll.
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