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| Starbucks to hire more baristas in bid to win back customers | |
| (about 1 hour later) | |
| A Starbucks barista at a Coachella party | A Starbucks barista at a Coachella party |
| Starbucks will hire more baristas and scale back plans to roll out automation, the coffee shop giant's chief executive Brian Niccol says. | Starbucks will hire more baristas and scale back plans to roll out automation, the coffee shop giant's chief executive Brian Niccol says. |
| The move, which is part of his strategy to win back customers, comes as other food and drink chains increasingly adopt technology to cut costs. | The move, which is part of his strategy to win back customers, comes as other food and drink chains increasingly adopt technology to cut costs. |
| Also on Tuesday, the firm announced worse-than-expected financial results as its sales continue to fall. | Also on Tuesday, the firm announced worse-than-expected financial results as its sales continue to fall. |
| Mr Niccol was brought into Starbucks last year tasked with turning the business around as it struggles with rising prices and consumers cut back spending. | Mr Niccol was brought into Starbucks last year tasked with turning the business around as it struggles with rising prices and consumers cut back spending. |
| "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," Mr Niccol said during a call with investors. | "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," Mr Niccol said during a call with investors. |
| "What we're finding is... that wasn't an accurate assumption with what played out." | "What we're finding is... that wasn't an accurate assumption with what played out." |
| Increasing staff numbers was tested in a handful of stores around the time Mr Niccol joined the firm in September 2024. He has been expanding the approach to include around 3,000 stores this year. | Increasing staff numbers was tested in a handful of stores around the time Mr Niccol joined the firm in September 2024. He has been expanding the approach to include around 3,000 stores this year. |
| At the same time the firm said it will pull back from deploying its Siren Craft System. Named after the iconic Starbucks logo, it is a suite of technology and equipment that was introduced in 2022 to streamline drink-making. | |
| Mr Niccol highlighted that taking on more staff would mean higher costs but said he was "banking on some growth to come with the investment". | Mr Niccol highlighted that taking on more staff would mean higher costs but said he was "banking on some growth to come with the investment". |
| Alongside recruiting more baristas, Starbucks is also revamping its coffee shops, menus and the company's dress code. | Alongside recruiting more baristas, Starbucks is also revamping its coffee shops, menus and the company's dress code. |
| Starbucks said in April that its baristas would wear dark, single coloured shirts to "allow our iconic green apron to shine and create a sense of familiarity for our customers". | Starbucks said in April that its baristas would wear dark, single coloured shirts to "allow our iconic green apron to shine and create a sense of familiarity for our customers". |
| In January, it reversed rules for its cafes in North America that allowed people to use their facilities even if they had not bought anything. | In January, it reversed rules for its cafes in North America that allowed people to use their facilities even if they had not bought anything. |
| The changes were a U-turn from a policy introduced six years ago that allowed people to linger in Starbucks outlets and use their toilets without making a purchase. | The changes were a U-turn from a policy introduced six years ago that allowed people to linger in Starbucks outlets and use their toilets without making a purchase. |
| So far Mr Niccol's turnaround efforts have seen limited results. | So far Mr Niccol's turnaround efforts have seen limited results. |
| The company's latest financial figures showed that global sales fell by 1% in the three months to the end of March, the fifth quarterly decline in a row. | The company's latest financial figures showed that global sales fell by 1% in the three months to the end of March, the fifth quarterly decline in a row. |
| But while trading continued to show weakness in the US, which is its biggest market, sales rose in China and Canada. | But while trading continued to show weakness in the US, which is its biggest market, sales rose in China and Canada. |
| Starbucks shares fell by more than 6.5% in extended trading after the earnings were announced. | Starbucks shares fell by more than 6.5% in extended trading after the earnings were announced. |