Brian Niccol’s nascent Starbucks turnaround starts with treating workers better
Starbucks is showing signs of a genuine turnaround under CEO Brian Niccol, with a 7.1% rise in U.S. comparable sales and improved profits driven by increased staffing, higher wages, and store renovations. Niccol’s strategy focuses on restoring the human touch in customer experience, which had suffered from prior cost-cutting measures. Employee retention and satisfaction have improved due to significant investments, echoing successful turnarounds seen at Walmart and Macy’s.
- ▪Starbucks reported a 7.1% increase in U.S. comparable sales and rising profits.
- ▪The company invested $500 million in staffing, wages, and store improvements.
- ▪COO Mike Grams, a former Taco Bell colleague of Niccol, credits better benefits for reduced employee churn.
Opening excerpt (first ~120 words) tap to expand
In today’s CEO Daily: Fortune‘s Phil Wahba reports on the factors behind Starbucks’ budding revival. The big leadership story: Mohamed El-Erian raises recession worries. The markets: U.S. future are up after the S&P 500 hit another record high. Plus: All the news and watercooler chat from Fortune. Good morning. This week brought convincing proof that Starbucks’ comeback under CEO Brian Niccol is for real. The coffee chain on Wednesday reported that quarterly U.S. comparable sales rose 7.1%, their second straight gain.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
Discussion
0 commentsMore from Fortune
