Wed, 30 Apr 2025

Wed, 30 Apr 2025 Starbucks boss plans more baristas and less tech

The move to increase staff numbers comes as the coffee shop giant continues to see sales fall.
Starbucks plans to hire more baristas and scale back its use of automation, as part of CEO Brian Niccol's strategy to win back customers. The move comes as other food chains adopt technology to cut costs. Starbucks also announced worse-than-expected financial results, with sales falling 1% in the latest quarter. The company's decision to hire more staff is a reversal of its previous policy, which aimed to reduce labor costs by automating tasks. However, this approach did not yield the expected results, according to Niccol. In contrast, testing the new approach in a handful of stores showed increased customer satisfaction and loyalty. To implement the new plan, Starbucks will pull back on deploying its Siren drink-making system, which was introduced in 2022 to streamline operations. The company will also revamp its coffee shops, menus, and dress code. Despite these efforts, Starbucks' sales continue to decline, with a 1% drop in the latest quarter marking the fifth consecutive quarterly fall. However, the company reported an increase in sales in China and Canada, two of its key markets.
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