Starbucks — ringing up record sales but struggling with low employee morale — plans to spend $450 million next year to make its North American stores more efficient and less complex.
The company also said it plans to open 2,000 net new stores in the U.S. by 2025, with an emphasis on meeting the growing demand for new types of service, including drive-thru, mobile ordering and delivery. Drive-thru now makes up 50% of U.S. sales, for example, while delivery demand has grown by 24% so far this year.
The introduction of an increasing number of hot food items is also slowing Starbucks’ kitchens. Culver said Starbucks expects to serve 300 million breakfast sandwiches in the U.S. this year, each of which takes up to 85 seconds to warm in its ovens. Starbucks plans to start cooking them in batches and storing them in warmers next to the drive-thru windows.
Starbucks executives made little mention of a growing unionization effort at its U.S. stores during morning presentations Tuesday. But it has clearly been an impetus for the company to think more deeply about ways to improve employees’ work life. Since late last year, 236 of Starbucks’ 9,000 company-owned U.S. stores have voted to unionize, an effort the company opposes.
Starbucks says it is required to negotiate new benefits with union stores. But in August, the Seattle office of the National Labor Relations Board filed a complaint against the company, saying it was violating U.S. labor law by withholding wage increases and other benefits from workers in unionized stores. A hearing in that case before an NLRB administrative judge is scheduled for October.
“There are two paths. We can work together as partners, side by side, or we can have a third party between us,” he said.
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Starbucks To Revamp Stores To Speed Service, Boost MoraleStarbucks plans to spend $450 million next year to make its North American stores more efficient and less complex.
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Starbucks to revamp stores to speed service, boost moraleStarbucks __ ringing up record sales but struggling with low employee morale __ plans to spend $450 million next year to make its North American stores more efficient and less complex. The company also said it plans to open 2,000 net new stores in the U.S.
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Starbucks to spend nearly half a billion dollars to revamp image, make stores more efficientStarbucks plans to spend $450 million next year to make its North American stores more efficient and less complex. The company also said it plans to open 2,000 net new stores in the U.S. by 2025.
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Starbucks To Revamp Stores To Speed Service, Boost MoraleStarbucks plans to spend $450 million next year to make its North American stores more efficient and less complex.
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