In a move to rejuvenate its struggling business in the US, Starbucks has announced plans to eliminate 1,100 jobs and streamline its menu. The coffee giant will cut several beverages that are underperforming, including the Royal English Breakfast Latte and the White Hot Chocolate, while targeting a menu reduction of nearly one-third over the next year. This initiative comes in response to falling sales and long wait times that have plagued the company’s operations, particularly in the US market.
Starbucks Streamlines Menu and Cuts Jobs to Revitalize US Sales
Starbucks Streamlines Menu and Cuts Jobs to Revitalize US Sales
Starbucks aims to boost its US operations by simplifying its offerings and reducing staff numbers.
Chief Executive Brian Niccol, who previously led Chipotle, has been tasked with revamping Starbucks since his arrival last year. He emphasized a return to the company’s coffee house origins, stating that the discontinued drinks were infrequently ordered, complicated to produce, or redundant in their offerings. The changes will take effect on March 4, with a focus on popular items executed with high quality.
Additionally, the job cuts will primarily affect corporate positions, leaving store-level jobs intact. Affected staff will be informed of the changes by midday on Tuesday, and the company is also eliminating several hundred open positions to bolster operational efficiency. Starbucks employs more than 360,000 globally and operates over 40,000 stores, with the US being its most vital market, despite facing recent challenges, including inflation-related pricing complaints and unionization efforts among baristas.
Recent statistics revealed an 8% drop in transactions at US stores open for at least a year, compared to the previous year. This push to simplify the menu contrasts sharply with earlier strategies focused on customization, indicating a strategic shift aimed at enhancing overall customer experience and brand loyalty.
Additionally, the job cuts will primarily affect corporate positions, leaving store-level jobs intact. Affected staff will be informed of the changes by midday on Tuesday, and the company is also eliminating several hundred open positions to bolster operational efficiency. Starbucks employs more than 360,000 globally and operates over 40,000 stores, with the US being its most vital market, despite facing recent challenges, including inflation-related pricing complaints and unionization efforts among baristas.
Recent statistics revealed an 8% drop in transactions at US stores open for at least a year, compared to the previous year. This push to simplify the menu contrasts sharply with earlier strategies focused on customization, indicating a strategic shift aimed at enhancing overall customer experience and brand loyalty.
