Latest news with #StarbucksCorp.
Yahoo
5 days ago
- Business
- Yahoo
Starbucks Reshuffles Leadership to Accelerate Turnaround Bid
(Bloomberg) — Starbucks Corp. is reorganizing part of its senior ranks, looking to speed up plans to reverse a sales slump. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The Buffalo Architect Fighting for Women in Design Mike Grams, hired last year as head of North America stores, will become chief operating officer, according to an announcement Wednesday. His responsibilities will expand to include the department in charge of building and renovating stores, led by Meredith Sandland, and the supply-chain division helmed by Sanjay Shah. The company is also fusing its global brand and global coffee teams to further emphasize coffee as the core of the company's menu, product innovation and marketing. As a result, Michelle Burns, executive vice president of global coffee and sustainability, will report to Tressie Lieberman, the company's chief brand officer. Starbucks shares were little changed in extended trading on Wednesday. The stock has declined 3.4% so far this year, compared to a 1.5% increase in the S&P 500 Index. Starbucks is enacting the changes to accelerate its turnaround after disappointing results last quarter. Chief Executive Officer Brian Niccol has said performance 'isn't yet where we want it to be.' 'We're on the right path, but we need to move faster,' Niccol said in the announcement. 'We're making additional organizational changes to help bring teams closer together, strengthen leadership accountability and allow teams to move with even greater clarity and urgency.' In other changes, Chief Technology Officer Deb Hall Lefevre will report to Cathy Smith, the company's new chief financial officer. The move should help the company speed up the deployment of technology that could make service faster, including an algorithm that helps prioritize drink orders. Additionally, Chief Legal Officer Brad Lerman will leave Starbucks and assist with the search for his successor. The company earlier this year cut 1,100 corporate jobs in a bid to remove duplication and speed up decision making. (Adds shares and details in sixth paragraph and eighth paragraphs.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Starbucks Is Said to Kick Off Process to Sell Stake in Sprawling China Business
(Bloomberg) -- Starbucks Corp. has contacted private equity firms, technology companies and others as it considers options for its China business, including a possible stake sale, according to people familiar with the matter. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Power-Hungry Data Centers Are Warming Homes in the Nordics A New Central Park Amenity, Tailored to Its East Harlem Neighbors Maryland's Credit Rating Gets Downgraded as Governor Blames Trump The coffee chain sent out letters via a financial adviser to several potential investors this week to solicit views on the China business and how to grow it, the people said, asking not to be identified because the process is private. A transaction could value the assets at several billion dollars, the people said. Bloomberg News reported previously that Starbucks was assessing its operations in China, its second-biggest market. The company has warned of macroeconomic and competitive pressures in the country, where the likes of Luckin Coffee Inc. and Cotti Coffee have emerged as major homegrown players. Starbucks, which had more than 7,750 stores in China as of the end of March, generated about $740 million net revenue in the country in the quarter through March. Luckin's net revenue was $1.2 billion in the same period. Prospective bidders are expected to submit initial feedback in the next few weeks, the people said. Starbucks may also decide not to do a deal, they said. A representative for Starbucks said the company didn't have any comment beyond what has already been shared publicly, referencing a late April earnings call by Chief Executive Officer Brian Niccol, when he said there was evidence of progress in China following changes to product offerings and prices. 'We remain committed to China for the long term,' Niccol said at the time. 'We see great potential for our business there in the years ahead and remain open to how we achieve that growth.' Niccol also said in October that said Starbucks was exploring partnerships to help it over the long term, without elaborating. Both McDonald's Corp. and Yum! Brands Inc., the parent of KFC, sold stakes in their China operations to PE firms to tap growth and better cater to local tastes. In 2023, McDonald's agreed to buy back Carlyle Group Inc.'s minority stake in a partnership that runs the chain's business in China, Hong Kong and Macau. Starbucks shares are down 25% from a Feb. 28 peak. --With assistance from Daniela Sirtori. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Why Obesity Drugs Are Getting Cheaper — and Also More Expensive Trump Has Already Ruined Christmas The Recession Chatter Is Getting Louder. Watch These Metrics ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
14-04-2025
- Business
- Bloomberg
Starbucks Sets New Barista Dress Code in Latest Change to Stores
Industries Consumer A narrower color palette seeks to improve consistency CEO Brian Niccol is seeking to revive sales after a slump Starbucks Corp. is updating its dress code for baristas to make it more consistent across North American stores, part of a broader plan to revive sales by revamping the look and feel of cafes. Starting May 12, baristas will wear solid black tops, a change from prior practice allowing any color. Baristas can wear their own attire, and Starbucks will provide two shirts from a new company-branded line at no cost.
Forbes
03-04-2025
- Business
- Forbes
‘Forced Joy': The New Corporate Mandate Of Employees Gone Too Far?
Some big businesses are peddling "forced joy," mandating that employees put on a happy face even if ... More they're not feeling it. First it was return-to-office (RTO) mandates, forcing the American workforce out of remote working and back into the office, causing a huge back lash, especially among younger workers. Now, there's a new movement afoot called 'forced joy"--acting 'as if' on steroids, smile or else, if you will--a simple, yet powerful tool that says you can lift your mood by acting as if you already feel better than you actually do. According to Beth Kowitt, Bloomberg opinion columnist, 'forced joy' is a new job requirement that Starbucks Corp. is imposing on their baristas. She adds that as other corporations end their remote work policies, 'they want butts back in seats--and they want employees to be happy about it.' She calls 'forced joy' a miserable corporate trend at companies like Starbucks and Tiffany where fun has become a job requirement. Kowitt raises a larger question of why corporate America feels the need to force anything upon employees in today's job market--given that the American workforce is so disengaged. It's one thing to mandate workers back into the office. But mandating specific feelings is quite another, treating employees like robots, expecting them to manufacture feelings on cue while selling products. I asked Dr. Jason Helfrich, co-founder of 100% Chiropractic, to identify some of the signs of 'forced joy' in the workplace. "Any savvy consumer can tell sincere joy and appreciation from forced," he told me. 'The tell-tale signs are insincere smiles and laughter, work attitude doesn't match (i.e. name on a cup with a heart and then slams down the pen). The message is not consistent, one consumer may get a smile while the next three do not and finally the way the employee treats their coworkers does not match up with the forced smile and gratitude they show to customers. ' Helfrich points out that his organization tries their best to provide a culture where "forced joy" isn't needed, but we all have those days . . . put on a smile, turn up the music and watch that mood turn around. I asked Helfrich about 'forced joy's' purpose, and he explains it as twofold. "The owner or manager wishes to create an environment conducive to first class service and experience for their customer. Or the owner or manager strives to provide an enjoyable work environment leading to happier and more productive employees.' By nature, joy is drawn, not driven. I asked Helfrich how employees can handle 'forced joy' when it's dictated from top down. He explains first of all, it's important to understand the purpose is to create an environment that promotes business and financial success, leading to job security, promotions and competitive pay for employees. 'Sometimes the 'fake it till you make it' mentality works and often changes one's mood by simply smiling or saying something nice to a customer.' And he's right. I have written for about the research on how a simple smile tricks your mind into a positive workday mood. Smiling can change your attitude, even if you don't mean it, tricking your mind simply by how you move your facial muscles. When you smile, you feel good not just because it reflects how you feel, but the facial expression contributes to how you feel. Neuroscience shows when we 'force joy,' it stimulates the amygdala—the emotional brain center, which in turn releases neurotransmitters to encourage an emotionally positive state. Although there's a science behind 'forced smiling,' it's doubtful that it's part of corporate America's rationale. The major difference is that the 'forced smiling' is an authentic technique that draws from within, not coerced from an outside force. Kowitt points out that the 'forced joy' directive comes from CEO Brian Niccol. She asserts that the underlying message to employees is this: 'It's not enough to manufacture a product for customers; they must also manufacture a feeling. And if Niccol can't motivate workers to do so organically, he'll decree it by edict.' And that's the bigger issue. The American workforce is tired of decrees and edicts that resurrect dinosaur leadership practices that we already know don't work. The old fashioned hatchet-boss leadership style destroys employee engagement and the company's bottom line. Younger employees are unwilling to crouch behind the potted plant in the corner or pay the price of coercion, humiliation or burnout from iron-fisted leadership to climb the career ladder. 'The power of making someone's day is often overlooked,' Helfrich says. 'You may be the best part of someone's day. Take the responsibility seriously, one smile can change someone's day, and in turn they treat everyone in their life a little bit differently. Some research suggests the average person passes 1,000 people per day. Imagine the impact you can have by showing a smile.' We all want to put our best foot forward in our jobs. But workers want authentic joy in supportive work environments where empathy, inclusion and compassion are expressed--not mandated--by leaders. According to Kowitt, 'In the age of forced joy, employers are requiring positivity and passion because workers aren't voluntarily producing a whole lot of either right now.' Bringing joy back to the workplace is critical, especially with RTO mandates, massive layoffs, 'boreout syndrome" sweeping the country and 50% of workers 18-34 feeling burnt out. Vickie Chen, CEO and co-founder of the mobile gaming company Avia, believes authentic strategies bring joy to the workplace. Her company placed two foster cats in its office, and employees collaborate to take care of them. More than 75% of Avia's employees believe the office cats have strengthened team cohesion, and the animals have become like mascots in the office. Paycom, a leading HR tech software and payroll provider, has created an employee campus that more closely resembles a college campus than a corporate office. The company has created spaces where people go to relax, work away from their desk or even take time for themselves. Also included are a fitness center, a courtyard with fountains, cafes, zen rooms and sound-proofed privacy booths. When steps are available that draw authentic joy, it's begs the question why companies need to demand or manufacture 'forced joy' when they can have the real thing. Plus, it's more effective for employees, customers and company profitability .
Yahoo
30-03-2025
- Business
- Yahoo
Starbucks Is Cutting Wait Times for Drive-Up and Mobile Orders
(Bloomberg) -- Customers who pull up to Starbucks Corp.'s drive-through locations should soon get their orders within four minutes. At least, that's the goal. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes Gold-Rush Fever Returns to Historic New Zealand Mining Town The new wait time target is being rolled out at more than 11,000 company-owned stores in North America, according to recent training documents viewed by Bloomberg News. The plan also includes goals for mobile orders. It's part of a push to lure in customers by improving service, and echoes a four-minute target for in-store orders announced last fall. Starbucks didn't previously have company-wide service time goals for all types of orders. The changes should improve the customer and worker experience, 'reducing complexity and friction to enable baristas to showcase coffee, craft, and connection,' said Mike Grams, who serves as Starbucks' North America chief coffeehouse officer. Starbucks is looking for a turnaround after drink delays and other issues led to disenchanted customers and rare sales declines. Chief Executive Officer Brian Niccol, who took over in September, is seeking to make Starbucks more of a destination again, both for patrons who want to sit in its cafes and those who want to pick up something quickly. For mobile and delivery orders, the wait should be no longer than 12 minutes from when the order is submitted, according to the training materials, though the priority for app orders should be having items ready within the estimated time shown to customers. For in-store and drive-through orders, the four-minute clock starts once the order is placed. The company didn't immediately disclose current wait times. In the past, Starbucks only formally tracked how much time customers spent at the handoff window in the drive-through. The previous CEO observed that waits were one of the reasons some customers ordering on mobile were adding items to their cart but not completing their orders. And when anticipated wait times for mobile orders exceed 15 minutes, 'that's when we have people kind of bailing,' Niccol has said. Improving wait times will require several changes. Starbucks is testing a new staffing model as Niccol has said that labor likely got 'too thin' in certain areas. It's training baristas on what it calls the Starbucks Craft System, a set of routines and technology for making the perfect drink and interacting with customers. The company is also working on a new algorithm to help prioritize the order in which drinks are made. Business Schools Are Back Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? ©2025 Bloomberg L.P. Sign in to access your portfolio
