6 hours Ago By The Straits Times
Starbucks saw sales plunge for a third consecutive quarter, with weakness especially evident in the United States and China. NEW YORK - Starbucks’ new chief executive Brian Niccol has his work cut out for him. The global coffee chain saw sales plunge for a third consecutive quarter, with weakness especially evident in the United States and China.
Tasked with reassuring investors that the company’s coffee shops are still hugely popular, Mr Niccol also has to contend with baristas and hardcore Starbucks customers who say they want plenty of changes. Baristas complain about what they say are chronic understaffing and poor pay and benefits, and their inability to easily ban aggressive customers from Starbucks stores. Zealous customers want consistently good coffee.
On Oct 22, after Starbucks reported a 6 per cent fall in fourth-quarter same-store sales in the US and pulled its earnings guidance for the coming fiscal year, Mr Niccol said baristas need to be supported to provide “exceptional service” to customers. “To succeed, we need to address staffing in our stores, remove bottlenecks and simplify things for our baristas,” he said in a video statement. Ms Liv Ryan, a barista and union organiser at a Starbucks in Long Island, New York, said Mr Niccol should put “an end to short staffing”.
She also said baristas have long had gripes about the lack of guidance from Starbucks on how to contend with bad-tempered customers. “I have been told countless times that part of our job is ‘just taking rude customers,’” Ms Ryan said. “But there’s no clear line between ‘rude’ and ‘hostile’, and even then, I shouldn’t have to put up with anyone being rude to me at my job.
” Several other baristas who are part of – or aim to be part of – the new Starbucks Workers United union want to see Starbucks complete the contract bargaining process with workers. “All I’m looking for is a collective bargaining agreement by the end of the year,” said union organiser Parker Davis at a Starbucks in San Antonio, Texas. Mr Niccol in the video said he would share more details about possible changes on the company’s earnings call on Oct 30, after Starbucks releases earnings for its fourth quarter and the year as a whole.
As for the coffee itself, it is over-roasted, according to zealous Starbucks customer Winter. Winter, who has been to more than 19,000 Starbucks locations across the world in a quest to visit every corporate-owned location, said he still enjoys the atmosphere at the Starbucks, but these days, he has found the coffee wanting. He used to like it back in 1997, he says, but Starbucks has since made its menu far more complex with speciality coffee orders.
“And getting a fancy drink isn’t going to make me enjoy it any more.” REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you. Read 3 articles and stand to win rewards Spin the wheel now.
