Core Insights - Starbucks is implementing significant cost-cutting measures, including laying off 900 corporate employees and closing an undisclosed number of stores across North America as part of a turnaround plan [1][2] - The company anticipates these actions will incur approximately $1 billion in costs related to severance payments, lease exits, and other store closure expenses [2] - CEO Brian Niccol emphasized that these steps are aimed at reinforcing successful strategies and reallocating resources effectively [2][3] Cost-Cutting Measures - The layoffs will be accompanied by the elimination of many open and unfilled positions [3] - The company is undergoing a major overhaul, with over 1,000 stores being remodeled at an estimated cost of $150,000 per store, aiming to create a more inviting atmosphere [4] - The number of company-operated stores is expected to decline by 1% this year, despite recent openings [4] Store Closures - Stores identified for closure were deemed unsuitable for the planned upgrades or lacking a viable path to financial performance [5] - Specific details regarding the number and locations of the stores to be closed have not been disclosed [4][5] Sales Performance - Starbucks has experienced six consecutive quarters of same-store sales declines [6] - To attract customers back, the company is reinstating pre-pandemic policies, such as hand-writing customer names on cups and offering free refills on certain orders [6] - The return of milk and sugar stations is expected to enhance customer experience and improve service efficiency [7]

Core Viewpoint - Starbucks is implementing a $1 billion restructuring plan that includes closing stores and cutting 900 jobs under the leadership of new CEO Brian Niccol, aiming to transform the business and enhance store attractiveness [1][2] Group 1: Store Closures and Restructuring - The company plans to reduce its total number of stores by 1% by fiscal year 2025, maintaining a total of 18,300 stores in the U.S. and Canada [1] - Starbucks will close underperforming stores identified through a comprehensive evaluation and will focus on developing stores that align with Niccol's strategic vision [1] Group 2: Store Upgrades and Customer Experience - The company intends to expand store operations and renovate an additional 1,000 locations, with initial upgrades showing positive results in customer visit frequency and duration [1] - Niccol's strategy includes optimizing store facilities by increasing seating and adding power outlets to attract customers more frequently and encourage longer stays [1] Group 3: Financial Performance and Market Competition - Despite these adjustments, the financial performance of Starbucks has not shown significant improvement, with the company facing intense competition from smaller coffee chains in key markets like the U.S. and China [2] - Starbucks is working to streamline its menu and reduce drink preparation complexity to shorten customer wait times and introduce new products that cater to changing consumer preferences [2] Group 4: Investor Sentiment and Concerns - While analysts and investors generally support Starbucks' transformation efforts, there are growing concerns regarding the costs and implementation timeline of Niccol's plans, especially as the company's profitability has declined due to significant investments in brand renewal [2]

Starbucks Corp. on Thursday announced it will close stores and eliminate 900 positions as part of a $1 billion restructuring initiative aimed at revitalising the coffee chain under Chief Executive Off... ...

Group 1: Starbucks Incident - A Starbucks employee in Malaysia was accused of insulting a customer, leading to public outrage [1] - The employee has been terminated, and Starbucks issued an apology through its official overseas account [1] - The incident highlights the importance of respect in customer service, as emphasized by the franchise owner, Success Food Group [1] Group 2: JD's Seven Fresh Coffee - JD is launching a low-cost coffee brand, Seven Fresh Coffee, aiming to enter the affordable coffee market with products priced under 10 yuan [2] - The company is recruiting business partners under a light-asset model, where partners provide the location and initial investment while JD manages operations [2] - A unique revenue-sharing mechanism allows partners to earn 5% of each coffee sale, with additional incentives for using their own staff [2][3] Group 3: 7 Fen Tian's Frozen Mango Controversy - The fruit tea brand 7 Fen Tian has been accused of using frozen mangoes with a shelf life of 24 months in its drinks [4] - Customer service confirmed the use of frozen mangoes but did not clarify why fresh mangoes were not used despite their availability [4] Group 4: Tea Baidao Management Change - Sichuan Tea Baidao announced a change in its joint company secretary, with Li Zhongcheng resigning and Zou Xinglong taking over [5][6] - Zou Xinglong brings over 14 years of experience in company secretarial and legal fields, enhancing the company's governance and investor relations [6]

Core Insights - Starbucks is laying off approximately 900 non-retail employees and plans to close an unspecified number of stores in the U.S. and Canada as part of a strategic turnaround effort [1][2] - A review indicated that many Starbucks locations are not meeting financial performance targets or customer expectations, prompting these actions [2] - The company anticipates ending its fiscal year with 18,300 stores in North America, a decrease of 124 stores from the previous year, marking a rare instance of a reduction in store count during a fiscal year [3] Company Strategy - CEO Brian Niccol, known for his turnaround expertise, was brought in to revitalize Starbucks, similar to his successful tenure at Chipotle where he significantly increased revenue and profit [4] - The company will provide severance and support packages for the employees affected by the layoffs [4]

Starbucks (SBUX) announced plans to close unprofitable locations and cut corporate jobs as CEO Brian Niccol focuses on the company's turnaround plan. In a letter posted to its blog and sent to employees on Thursday, Niccol shared that the company plans to eliminate 900 non-retail roles and close open positions as part of a $1 billion restructuring effort. The memo said employees will be notified on Friday, Sept. 26, and will offer "severance and support packages including benefits extensions." "We will c ...

Core Insights - Starbucks is implementing a turnaround plan that includes closing unprofitable locations and cutting 900 corporate jobs to manage costs and focus on long-term growth [1][2] Group 1: Job Cuts and Corporate Changes - The company plans to eliminate 900 non-retail roles and close open positions, with severance and support packages offered to affected employees [1] - Earlier this year, Starbucks laid off 1,100 employees, and the savings from these layoffs will be reinvested into enhancing customer service by adding more employees [2] - Corporate employees are now required to work in the office four days a week starting in late September [2] Group 2: Store Performance and Strategy - Starbucks reported its sixth consecutive quarterly decline in US same-store sales, with a 2% drop, which was less severe than the anticipated 2.5% decline [3] - The company plans to reduce its store count by approximately 1% in Canada and the US this fiscal year, resulting in nearly 18,300 locations by year-end [4] Group 3: Store Closures and Investments - Locations identified as unable to meet customer expectations or lacking a path to financial performance will be closed [5] - Starbucks intends to invest in 1,000 locations over the next 12 months to enhance the coffeehouse atmosphere, moving away from a pickup-focused experience [5] Group 4: Renovation and New Store Concepts - The company plans small, targeted renovations costing about $150,000 per location to restore seating for patrons [6] - For new locations, Starbucks has reduced build costs by approximately 30% and will introduce a new stand-alone prototype in fiscal 2026 featuring 32 seats and a drive-through [7]

Starbucks will close 1% of its locations in the U.S. and North America and cut about 900 jobs as part of its Back to Starbucks transformation strategy, CEO Brian Niccol told employees Thursday, Sept. 25. The specialty coffee chain will close specific locations "where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance," Niccol said in a memo sent to employees and posted on the Starbucks blog. Employees at those location ...

Core Insights - The company is undergoing significant changes to enhance customer experience and financial performance, including the closure of underperforming stores [1][6][11] - A new executive team has been appointed to drive these changes, with key members having prior experience with the company [2] - The company is committed to investing in its coffeehouses and improving the overall atmosphere and service quality [4][9][12] Store Closures - The company has identified specific coffeehouses that do not meet customer expectations or financial viability, leading to their closure [6][7] - Despite these closures, the overall number of company-operated locations in North America is expected to decline by about 1% in fiscal year 2025, after accounting for new openings [8] - The total number of Starbucks locations in the U.S. and Canada is projected to be nearly 18,300 by the end of the fiscal year [9] Workforce Changes - Approximately 900 non-retail partner roles will be eliminated as part of cost management efforts [11][12] - The company is focused on providing support and severance packages for affected employees, with a goal of potentially rehiring them in the future [10][12] - The company is also increasing the number of partners in stores to enhance customer service and operational efficiency [14] Future Plans - The company plans to uplift over 1,000 locations in the next 12 months to improve design and customer experience [9] - Early results from recent investments in coffeehouse improvements indicate increased customer visits and satisfaction [14] - The company aims to build a stronger and more resilient brand while creating more opportunities for partners and communities [15]

Core Viewpoint - Shares in Italian luxury group Brunello Cucinelli are currently suspended from trading on the Milan market, awaiting a statement from the company [1] Company Summary - The suspension of trading indicates potential significant news or developments regarding Brunello Cucinelli that may impact its stock performance [1]