[Spam] Starbucks' profit slumps as costs mount from turnaround effort

Prius Pilots R Stoopid · 2025-04-30T11:06:01+00:00

Starbucks plans to spend more on baristas while putting the expansionof a three-year-old café technology system on ice, as it emphasiseslabour over gadgets as a way to bring customers back to stores. The US-based coffeehouse chain on Tuesday reported a 2 per centyear-on-year increase in quarterly revenue to $8.8bn — in line withexpectations — but a 50 per cent slide in net income to $384.2mn.Analysts polled by Visible Alpha had predicted quarterly profits of$551mn.Under chief executive Brian Niccol, who took charge inSeptember, Starbucks has sought to reverse a sales slump that has nowpersisted for more than a year.Niccol, a former Taco Bell and Chipotle Mexican Grill executive, has sought to reduce customers’ wait times, simplify menus and restore the welcoming coffeehouse feel that was lost as more business moved online during the Covid-19 pandemic.“We’re finding through our work that investments in labour rather thanequipment are more effective at improving throughput and drivingtransaction growth,” he told analysts. Meanwhile, he said the company would pause the rollout of parts of the Siren Craft System, a technology to streamline café operations that was unveiled in 2022.“Over the last couple of years, we’ve actually been removing labour from the stores, I think with the hope that equipment could offset the removal of the labour,” Niccol told analysts. “And think what we’re finding is that was just — that wasn’t an accurat assumption with what played out.” Starbucks has 361,000 employeesworldwide, most of them in cafés. Baristas have complained of being overwhelmed juggling in-store and online orders at the busiest times of day, while customers have been frustrated by long wait times. Investment to improve cafés is coming at a cost: Starbucks said store operating expenses rose 12.1 per cent to $4.2bn in the quarter. The company said additional labour in support of Niccol’s “Back to Starbucks” strategy was one reason why...

Apr 30, 2025 Last reply: 1 year ago 27 Replies

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pothead 1 year ago

Parts of N.J used to be known as "Cancer Alley". In fact, some still are.

That should fit on a license plate!

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% 1 year ago

too bad you can't afford a car

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Governor Swill 1 year ago

You can be a hardcase, sometimes.

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Governor Swill 1 year ago

Yah, Jersey was always blue collar and the mob to Manhattan's white collar and High Society.

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-hh 1 year ago

I'd already noted NJ daytrips within sight of the NYC skyline. Probably should also include Atlantic City & the Jersey Shore too, especially since none of the original cast in the "Jersey Shore" reality TV series were even from NJ.

Nah, you've never paid attention to your extended neighborhood, as the topic of "Central NJ" has been kicking around for decades on where the dividing line supposedly was. GOV Murphy simply used it as a tourism opportunity, which also curtailed most of the "where" bickering for now.

-hh

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-hh 1 year ago

Yet are in the shadow of NY's Love Canal & Gowanus Canal; Long Island alone has 34 Fed & 449 NY Superfund sites

-hh

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-hh 1 year ago

Nah, nowhere close. Case in point:

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posted by: <https://x.com/NJGov

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Siri Cruz 1 year ago

Semi fabs used to dump used chemical like hydrofluoric acid outback. We have a number of bad spots. Our elders had the foresight to zone those north near the bay so that is slowly seeping into the bay instead of the water supply.

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