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Starbucks admitted that automation did not compensate for staff reduction, leading to a drop in sales and an increase in discontent among customers. The new CEO Brian Niccol has decided to reverse the course, focusing on a greater investment in staff and experience in the shop.

Key points:

• CEO Brian Niccol recognized that automation has not improved productivity as expected.
• Starbucks recorded a 1% of global sales in the first quarter of 2025.
• The company plans to take thousands of bartenders and reduce the use of automated machinery.
• The unionized workers continue to ask for better working conditions and Equi contracts.

In recent years, Starbucks has tried to reduce operating costs through automation, introducing systems such as the Siren Craft System for the automatic preparation of drinks. However, this strategy did not lead to the desired results. CEO Brian Niccol said that the reduction of staff, in the hope that the equipment could compensate, proved to be an inaccurate hypothesis.

In the first quarter of 2025, Starbucks reported a turnover of 8.76 billion dollars, with a profit per non-gaap action of 0.41 dollars, down by 40% compared to the previous year. Sales of stores in North America decreased by 1%, due to a drop of 4% of the transactions.

In response, Starbucks decided to reverse the course, announcing the intake of thousands of barists and the reduction of the use of automated machinery. The company also introduced initiatives to improve the experience in the shop, such as the addition of hand -written notes on the cups and the reorganization of the interiors of the premises. In addition, a new algorithm has been tested for the sequence of orders, aimed at reducing waiting times and improving the workflow.

At the same time, Starbucks continues to confront the requests of trade union workers. The Starbucks Worlds United, which represents over 11,000 barists in more than 570 points of sale, has asked for wage increases, better working conditions and Equi contracts. In December 2024, about 5,000 workers participated in strikes in over 300 locations in the United States, asking for a minimum wage of $ 20 per hour and other benefits.

Despite the challenges, Starbucks expressed his intention to collaborate with the unions to find shared solutions. In a joint declaration, the company and the world United have reaffirmed their commitment to work together to reach collective agreements that satisfy both sides.

Starbucks is reviewing his strategy, recognizing the importance of human capital in offering a customer experience of quality and in supporting the growth of the company.