Higher prices and longer wait times have Starbucks customers pulling back. With sales falling for three straight quarters and baristas juggling in-store, drive-thru and digital orders with endless customization options, the struggling chain is in need of a fresh start. So, how did the company get here and what is new CEO Brian Niccol’s plan to turn it all around?
Read more:
0:00-1:09 – Intro
1:10-2:05 – The Starbucks Story
2:06-3:19 – Decline of the Cafe Experience
3:20-5:42 – Trouble with Unions
5:43-6:41 – 2024: Protests, China, and Other Woes
6:42-8:29 – Can Brian Niccol Save the Day?
#Starbucks #Business #Bloomberg
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date 2024-12-03 16:40:34
views 549259
author UCUMZ7gohGI9HcU9VNsr2FJQ
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Can Starbucks Save Itself?
As the second-largest restaurant chain in the world, behind only McDonald’s, Starbucks has been facing a perfect storm of challenges. With declining sales, overworked employees, and a company in need of a reboot, new CEO Brian Niccol has taken the reins, hoping to turn things around. The company’s struggles began with the rise of mobile ordering, which led to increased pressure on baristas, causing many to feel burnt out and leading to a unionization movement.
The company’s response to the movement, led by former CEO Howard Schultz, was to stall at the bargaining table and even close stores that had unionized. However, under new leadership, Starbucks has reopened communication with unionized employees, with the goal of reaching a mutually satisfactory contract.
The company’s struggles extend beyond employee relations, with declining sales and woes in China, where it has lost market share to Luckin Coffee. The pandemic has also impacted the company’s growth, particularly among non-rewards customers who are tougher to win back.
As a leader with experience in the restaurant industry, Niccol hopes to refocus Starbucks on its core strengths, including its welcoming atmosphere and high-quality coffee. He believes that by getting back to the company’s "third place" concept, where customers can gather and socialize, Starbucks can once again thrive. While the road ahead will be long and challenging, Niccol’s leadership and expertise give hope that Starbucks can turnaround its fortunes.
