From CNBC: 2025-06-15 08:00:00

Starbucks is implementing a turnaround strategy to attract customers and reassure investors. CEO Brian Niccol is focused on reviving sales and improving cafes by adding seating, promoting internally, and introducing a new coffee called the 1971 Roast. The company aims to operate more efficiently, laying off 1,100 corporate workers to reduce redundancies. Shares have increased by nearly 20% since April.

Niccol’s “back to Starbucks” strategy aims to restore the company’s culture and reconnect with customers. Starbucks is reversing decisions like removing seats from cafes and plans to promote internal talent as it expands. The chain wants to raise internal promotions to 90% for retail leadership roles, offering more career mobility for store leaders. The company is also addressing staffing concerns by implementing a new labor model and adding assistant store managers. Starbucks CEO Brian Niccol credits Mellody Hobson with poaching him from Chipotle to turn around Starbucks. Howard Schultz, former CEO, made a surprise appearance at an event with Niccol. Analysts hope Niccol can escape Schultz’s influence. Schultz supports Niccol’s plan to revitalize Starbucks and encourages managers to bring energy to their locations.



Read more at CNBC: Turnaround plan focuses on employees