
Starbucks CEO Ends 1600 km Commute, Moves To Seattle as Hybrid Rules Tighten
Starbucks CEO Brian Niccol, known for his 1600 km commute, bought a home in Seattle. Starbucks mandates a four-day in-office workweek.
Starbucks CEO Brian Niccol, who got viral for commuting 1600 km thrice a week from his home in California to the office in Seattle by a corporate airplane, has now decided to settle in Seattle near the office. According to a Fortune report, Niccol bought a home in Seattle, aligning with the popular coffee-chain franchise's policy shift to traditional office setup.
Earlier, Starbucks told its employees that it would be mandatory for its staff to work at least four days a week in the office from the new fiscal year.
In the fresh communique, the company will shift from a three-day to a minimum four-day in-office workweek, with common days set as Monday through Thursday. This applies to its Seattle and Toronto support centers, as well as North America regional offices.
The new orders will come into effect from the new fiscal year, as noted by Starbucks CEO Brian Niccol in a blog post.
In a notable expansion of its earlier policy, Starbucks has also directed all Support Center people managers to relocate to either Seattle or Toronto within the next 12 months. This follows the company's earlier February directive requiring vice presidents and above to do the same. While individual contributors aren't being asked to relocate, future hires and lateral moves will require employees to be based in Seattle or Toronto.
Starbucks is allowing its staff to quit if they aren't willing to follow the new requirements.
Brian wrote in the post that 'to support those who decide to 'opt out", the company is offering a one-time voluntary exit program with a cash payment for partners.
Brain's 1600 km Commute Was A Hot Topic After His Appointment
When Brain Niccol had been appointed as Starbucks CEO after replacing Laxman Narasimhan, he soon became a viral topic over his 1600 km commute from home to office thrice in a week.
Starbucks' quarterly earnings of Q2 FY2025 showed the rising pressure on margins and profits. Its consolidated net revenue rose 2% year-on-year to $8.8 billion, or 3% on a constant currency basis.
However, global comparable store sales declined 1%, mainly due to a 2% drop in transactions, partially offset by a 1% increase in average ticket size. In North America, comparable store sales dropped 1%, with a 4% decline in transactions. The U.S. segment performed slightly worse with a 2% drop in comparable store sales. Internationally, sales grew 2%, while China's performance remained flat—showing a 4% rise in transactions but a 4% decline in average ticket size.
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