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CNN
5 days ago
- Business
- CNN
Starbucks is changing one of the most
Starbucks is changing one of the most generous parts of its loyalty program, marking the latest effort by CEO Brian Niccol to boost profits. Beginning June 24, the coffee chain is eliminating the 25-star bonus for customers that bring in a personal, reusable cup for drink orders. Moving forward, they will instead earn double stars on their entire order, a Starbucks spokesperson confirmed, which might result in fewer stars. Accumulating the 25-star bonus, which began in 2022, was used by some Starbucks customers as a quick way to score a free coffee, tea or snack at the 100 point redemption level, or as a strategy to earn enough to redeem them on fancier drinks, food and merchandise for more stars, ranging from 200 to 400. Reducing that perk is the latest way that Niccol is dialing back deals in hopes of bolstering Starbucks' profit margins. One of his first orders of business was reducing discounts and promotions offered to loyalty members on its app to reposition Starbucks as a premium brand while also reducing the strain on employees. The latest change means that a customer ordering just a drink will get fewer stars. For example, a beverage in a personal cup that costs $4, like a medium iced coffee, would currently earn more than 30 stars if paid through a Starbucks card on the app. Next month, that will be reduced by about half the number of stars. However, the change benefits people with larger orders — i.e. a drink in a personal cup, a sandwich and a snack — because they would get more bonus stars. Plus, Starbucks confirmed that it's keeping the $0.10 discount when using a personal cup. Niccol has made many changes at the struggling company, which reported weaker-than-expected earnings report last month. He's changed employee uniforms, overhauled the menu by cutting 30% of its offerings and instituted a new policy restricting restrooms to paying customers. He has also brought back a company tradition of baristas doodling on cups, as well as self-serve milk and sugar stations.
CNN
5 days ago
- Business
- CNN
Starbucks is changing one of the most
Starbucks is changing one of the most generous parts of its loyalty program, marking the latest effort by CEO Brian Niccol to boost profits. Beginning June 24, the coffee chain is eliminating the 25-star bonus for customers that bring in a personal, reusable cup for drink orders. Moving forward, they will instead earn double stars on their entire order, a Starbucks spokesperson confirmed, which might result in fewer stars. Accumulating the 25-star bonus, which began in 2022, was used by some Starbucks customers as a quick way to score a free coffee, tea or snack at the 100 point redemption level, or as a strategy to earn enough to redeem them on fancier drinks, food and merchandise for more stars, ranging from 200 to 400. Reducing that perk is the latest way that Niccol is dialing back deals in hopes of bolstering Starbucks' profit margins. One of his first orders of business was reducing discounts and promotions offered to loyalty members on its app to reposition Starbucks as a premium brand while also reducing the strain on employees. The latest change means that a customer ordering just a drink will get fewer stars. For example, a beverage in a personal cup that costs $4, like a medium iced coffee, would currently earn more than 30 stars if paid through a Starbucks card on the app. Next month, that will be reduced by about half the number of stars. However, the change benefits people with larger orders — i.e. a drink in a personal cup, a sandwich and a snack — because they would get more bonus stars. Plus, Starbucks confirmed that it's keeping the $0.10 discount when using a personal cup. Niccol has made many changes at the struggling company, which reported weaker-than-expected earnings report last month. He's changed employee uniforms, overhauled the menu by cutting 30% of its offerings and instituted a new policy restricting restrooms to paying customers. He has also brought back a company tradition of baristas doodling on cups, as well as self-serve milk and sugar stations.
Yahoo
7 days ago
- Business
- Yahoo
Howard Levitt: Canada Post's labour dispute have you worried about unionization? Here's how to spot (and deter) an organizing drive
Unionized workplaces are being splashed across the news lately — but not in a way that increases their popularity. Five Starbucks Corp. locations in Ontario ratified their first collective agreements over the last three weeks, and we wonder how long it will be before employees join their U.S. counterparts who struck just days ago to protest the company's new dress code. Such labour disruptions can ruin more than your morning coffee. The standoff and last-minute agreement between Air Canada and its pilots in September had many rebooking their flights in a panic. And the Canada Post strike in November delayed delivery of important mail and wreaked havoc on holiday shopping. Now strike action is underway or looming once again for both of these employers. Unionized workplaces have been declining in Canada since the 1980s, and for the majority (around 70 per cent) of Canadian workers who operate union-free, the disruptions can be confusing and infuriating. Their employers may be thinking 'thank goodness it hasn't happened to us.' But it could. With the cost of living skyrocketing and Canadians desperate for job security, organizing drives have become a real concern — however illusory the benefits may be for the affected employees. Here are some of the ways employers can spot an organizing drive and what they can (and cannot) do about them. Some signs your employees may be organizing include: Increased frustration and dissatisfaction, with overall lower workplace morale and higher turnover Subtle changes in workplace patterns and behaviours, such as groups of employees suddenly falling silent when management approaches, or employees with no previous rapport spotted together. Employees may increasingly call in sick, delay production or take excessive breaks Increased questions about employment terms and benefits, such as wages or company policies A rise in complaints (including accusations of favouritism or maltreatment) and questioning authority Visible flyers and other pro-union propaganda and paraphernalia In each of these circumstances, employers have the right to set rules, discipline insubordinate employees and monitor performance to ensure smooth operations. Unfortunately, this can fuel the illusion that employees 'have it better' with union protection through 'strength in numbers.' What employees seemingly forget is that they will lose their own voice to the greater 'collective' (pun intended) and remain subject to the often illogical or impractical whims of policies and procedures imposed by the union. Worse yet, job protection means that less helpful or unproductive employees — even malicious ones who 'game the system' by working little, banking excessive benefits and exploiting policies like paid sick or short-term disability leave — remain employed for years to come. Instead, a proactive approach in these situations is always best. Positive employee relations, established in part by competitive wages and benefits as well as fair and respectful treatment of employees, go a long way in deterring certification. More importantly, this approach is more likely to keep employers compliant with labour law. Canadian labour laws prohibit 'unfair labour practices' (ULPs), which restrict the employer from interfering with unions. Accordingly, employers must never threaten to layoff, fire, interrogate or spy on employees amid an organizing campaign. Additionally, they cannot make promises to employees in exchange for voting against certification or discriminate or retaliate against those who vote in favour. So, what can employers lawfully do to prevent potential certification without committing a ULP? Management should be available to discuss employee concerns. This can include holding townhall meetings (where attendance is voluntary) and providing suggestion boxes or a formal complaint process. Encouraging transparency is crucial. Employers cannot spread anti-union animus, but they have no obligation to (and in fact, should not) share employee contact information with union organizers without their permission. The company may also consider improvements to wages or benefits. Salary increases across the board may be excessive, but introducing enhancements to overall working conditions can improve morale. These might include reforming workplace policies, enhancing training programs or leveraging technology to streamline production. Employers should provide management with talking points to answer anticipated questions about unionization and can outline challenges associated with union membership (e.g., union dues, seniority- rather than merit-driven compensation, etc.) — as long as they do not unduly influence workers. Howard Levitt: The key factors determining severance in wrongful dismissal cases Howard Levitt: Why Ottawa should stop interfering and let Canada Post and the union duke it out Employers are never impervious to the unionization of their employees, but promoting positive workplace relations and watching for early signs of an organizing drive will keep them one step ahead of the game without crossing the (picket) line. Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers with offices in Ontario, Alberta and British Columbia. He practices employment law in eight provinces and is the author of six books, including the Law of Dismissal in Canada. Alexis Lemajic is a senior associate at Levitt LLP. Sign in to access your portfolio
Mint
14-05-2025
- Business
- Mint
Starbucks Barista Strike Over Dress Code Reaches 100 US Stores
Baristas at about 100 unionized Starbucks Corp. locations have walked off the job since Sunday over the company's new dress code, according to the labor group representing the workers. The tally rose since Tuesday, when about employees at 50 locations had participated in the strikes, Starbucks Workers United said. The group represents baristas at about 570 of the chain's more than 10,000 company-operated locations in the US. Stores that experienced disruptions due to strikes earlier in the week are back to normal operations, while workers at additional locations walked off the job. Starbucks on Monday implemented a new dress code that requires baristas to wear solid black tops, a change from prior practice that allowed any color. There are also new rules on the bottoms baristas can wear, among other changes. Workers United alleged in a complaint to the US National Labor Relations Board that the changes during contract talks violate the law and show the company wasn't negotiating fairly. In a statement Wednesday, Starbucks said that less than 1% of workers at US locations have participated in the strikes, and that nearly all stores have been open and serving customers. As of Sept. 29, Starbucks employed 201,000 people in US company-operated stores, according to a filing. 'It would be more productive if the union would put the same effort into coming back to the table that they're putting into protesting wearing black shirts to work,' Starbucks said. Starbucks earlier said it would continue to bargain in good faith and that it wants to ensure that differences between what's agreed to in negotiations and what's implemented in stores are addressed 'lawfully and fairly.' Baristas argue that the dress code won't improve operations as Starbucks seeks to reverse five straight quarters of same-store sales declines, adding that a new wardrobe puts financial pressure on workers. The company has said it would provide two Starbucks-branded shirts free of charge but couldn't guarantee they would arrive by May 12, when the new dress code went into effect. This article was generated from an automated news agency feed without modifications to text.
The Star
01-05-2025
- Business
- The Star
Starbucks seeks to slash renovation costs
Starbucks had been spending US$800,000 to US$1mil for each store remodel. — Bloomberg NEW YORK: Starbucks Corp is looking to cut how much it spends upgrading stores, which could help address investor anxiety over the price tag of turning the chain around. Starbucks had been spending US$800,000 to US$1mil for each store remodel, chief executive officer Brian Niccol told staff in a companywide meeting, according to a recording viewed by Bloomberg News. The coffee chain is looking at ways to bring down costs for these renovations, which might involve major changes such as electrical or plumbing upgrades. Separately, the company came up with a new strategy to refresh stores for about US$150,000 each or less, Niccol said. Such a 'coffeehouse uplift' might include less drastic changes for stores already in good shape, such as new furniture and fresh paint. 'We started building really expensive stores that didn't look very great, so it couldn't have been any worse,' Niccol said. 'The seats are crap, and it's really expensive. It's impossible to make sense of that financially,' he added. Starbucks confirmed that cost-cutting related to the renovations doesn't change ongoing plans to add more outlets, comfier chairs, or other details designed to make stores more inviting – a key part of Niccol's turnaround plan. He's also leading projects to speed up service with more staff and technology, including an algorithm to prioritise which orders to prepare first, a move he has said is already cutting wait times in test locations. The company posted its fifth consecutive quarterly decline in comparable sales on April 29. Earnings per share took a hit because of expenses associated with the turnaround, and the company signalled profitability will remain under pressure as the coffee chain invests in stores and operations. Those warnings contributed to investor jitters, with shares falling 5.7% Wednesday. — Bloomberg
