you. Let's turn to Starbucks this morning, as you might know, announcing plans to cut some corporate jobs, close some North American stores as part of the company's broader turnaround efforts. Let's get to Kate Rogers, who brought us that news earlier this morning.Morning again, Kate. Good morning, Carl. So, Starbucks announcing a $1 billion restructuring plan this morning in an SEC filing, adding that it will lay off some 900 non- retail employees and, as you said, closed stores.The number of company opera ...

Core Viewpoint - Starbucks is initiating a $1 billion restructuring plan to reshape its North American operations, which will involve closing underperforming stores and cutting corporate jobs to reignite growth in its largest market [2][6]. Group 1: Store Closures and Restructuring - The company plans to reduce its portfolio of company-operated cafés in the U.S. and Canada by approximately 1% during fiscal 2025, resulting in about 500 store closures and an expected total of around 18,300 locations by the end of the fiscal year [3]. - Closures will focus on underperforming cafés or locations where remodeling is not financially viable, with affected workers offered transfers or severance pay [4]. - The restructuring will incur about $1 billion in charges, with 90% allocated to North America, including $150 million for employee separation and $850 million for closures and related costs [6]. Group 2: Employment Changes - The restructuring plan includes layoffs affecting roughly 900 non-retail employees, marking the second round of job cuts since the current CEO took over in 2024, following an earlier reduction of about 1,100 corporate positions [7]. - The company ended 2024 with approximately 16,000 employees outside retail stores [7]. Group 3: Strategic Initiatives - The initiative, termed "Back to Starbucks," aims to refocus investments on stores and enhance customer experience after six consecutive quarters of declining same-store sales [8]. - The company has pledged to invest over $500 million in additional labor hours across company-owned cafés to improve service quality under its Green Apron Service initiative [11]. Group 4: Market Reaction and Future Outlook - Following the announcement, Starbucks shares dipped around 1% but remain down more than 8% year-to-date, with the CEO expressing confidence in the long-term benefits of the overhaul [12].

Core Points - Starbucks is planning to close hundreds of stores and lay off nearly 1,000 employees as part of a turnaround strategy [1][2] - The restructuring efforts are expected to cost the company $1 billion, which includes $150 million for employee separation benefits and $850 million for store closures and lease exits [5] - The company aims to end its fiscal year with approximately 18,300 stores across the U.S. and Canada, down from 18,734 stores as of June 29 [3][4] Store Closures - The specific number of store closures has not been disclosed, but the company is focusing on locations that lack financial viability or do not meet the desired physical environment [6] - Starbucks intends to create a "warm and welcoming" atmosphere in its stores, which includes adding more comfortable seating and additional outlets [6] Employee Impact - Employees affected by the closures will be notified and may have the option to transfer to nearby locations [7] - This round of layoffs will only impact non-retail employees, following earlier layoffs of over 1,000 corporate employees [2] Financial Performance - In the latest earnings report, Starbucks reported a 2% decrease in North American comparable store sales, while net revenues increased by 2% [8]

Core Insights - Starbucks is implementing a turnaround plan that includes eliminating 900 jobs and closing stores as part of a strategic review of its North American operations [1][2][3] Store Operations - The coffee chain plans to reduce its store count by 1%, resulting in a total of 18,300 locations in the United States and Canada [2] - The decision to close certain stores is based on an assessment of locations that do not meet customer expectations or financial performance criteria [3] Customer Experience Initiatives - Starbucks is focusing on creating a more inviting and relaxing environment in its coffeehouses, aligning with CEO Brian Niccol's vision [3] - The company has promoted "sit and stay" visits to counteract declining foot traffic and sales, allowing customers to buy beverages in reusable containers for free refills [4] Marketing and Brand Strategy - Starbucks is investing in advertising on TV and streaming platforms to enhance its brand appeal and encourage customers to visit [4] - The company plans to improve its mobile app, mobile order-and-pay features, and rewards program in the upcoming year [4] Performance Metrics - Early results from initiatives aimed at enhancing the coffeehouse experience indicate that customers are visiting more frequently, staying longer, and providing positive feedback [5]

Core Viewpoint - Starbucks is implementing a significant restructuring plan that includes closing over 100 cafes and laying off 900 non-retail staff to address declining sales and improve store performance [1][2][6]. Group 1: Restructuring Plans - The company plans to close more than 100 locations in North America and the UK, although the total number of closures has not been disclosed [2]. - The restructuring is expected to cost around $1 billion (£750 million) and aims to enhance the atmosphere of existing stores [4]. - Starbucks intends to open 80 new stores in the UK this year, despite some existing locations closing [5]. Group 2: Financial Performance - Starbucks reported a 2% decline in global sales for the three months ending June 29 [6]. - The British arm of the company saw sales decrease from £548 million to £526 million for the year ending September 29, 2024, and posted a pre-tax loss of £36.2 million [5]. - Under CEO Brian Niccol, shares have fallen by approximately 12% since his appointment [4]. Group 3: Leadership and Challenges - Brian Niccol, who previously led Chipotle, was brought in to improve Starbucks' performance with a compensation package worth up to $113 million [3][4]. - The company has faced criticism for high prices and has been under pressure from activist investors and boycotts related to its perceived stance on the Israel-Gaza conflict [6].

Core Viewpoint - Starbucks is implementing a $1 billion restructuring plan that includes closing underperforming stores in North America and cutting 900 jobs to improve its financial performance and customer experience [1][9]. Group 1: Store Closures and Job Cuts - The company will close stores where it cannot meet customer expectations or achieve financial performance, with the majority of closures expected by the end of the fiscal year, reducing the North American store count by about 1% [3][4]. - The job cuts will primarily affect support teams, and the company will also close many open positions, with approximately 10,000 employees in non-coffee-house roles as of September 29, 2024 [8][11]. Group 2: Sales Performance - Starbucks has experienced six consecutive quarters of sales decline in the US, attributed to changing consumer preferences and increased competition [2][6]. Group 3: Leadership and Strategy - CEO Brian Niccol, who previously led a turnaround at Chipotle, is focusing on investing in store improvements to reduce service times and enhance the coffee-house environment while streamlining management [5][8]. - The company is also investing in technology to improve order sequencing and customer experience [9][11]. Group 4: Financial Outlook - Starbucks anticipates ending the fiscal year with nearly 18,300 locations across the US and Canada, down from 18,734 locations reported in July [4]. - Since Niccol's appointment in August 2024, Starbucks shares have increased by approximately 9% [11].

Core Insights - Starbucks is closing several locations in the U.S. and Canada as part of its turnaround strategy, indicating that the current approach is not viable in certain areas [2][3][8] - The company is also laying off 900 non-retail employees to reduce costs and focus resources on key growth areas [4][8] - Despite some positive signs, such as increased customer visits to revamped stores, same-store sales have been negative for the past six quarters, and store earnings have declined year-over-year [6] Company Strategy - CEO Brian Niccol stated that the closures are due to an inability to create the desired customer experience and financial viability in those locations [3] - The "Back to Starbucks" initiative aims to enhance the in-store experience, focusing on quick service and a more inviting atmosphere [4] - The company is attempting to shift customer behavior back to in-store visits, contrasting with competitors who have succeeded with drive-thru models [5] Financial Performance - Starbucks is expected to end the fiscal year with 18,300 locations, a 1% decrease from the previous year, but anticipates growth in the upcoming year [3] - Although there are signs of improvement in certain stores, overall same-store sales remain negative, and the company has faced challenges in international markets, particularly in China [6] Market Reaction - Investors initially reacted positively to Niccol's appointment as CEO, with shares rising 22% at the time [7] - However, shares have since fallen nearly 13% over the past year, indicating tempered expectations regarding the company's recovery [7]

Core Insights - Starbucks has closed its flagship Reserve Roastery located in Seattle's Capitol Hill neighborhood after nearly 11 years of operation [1] Company Summary - The closure of the Reserve Roastery marks a significant shift for Starbucks, which had positioned this location as a premium experience for coffee enthusiasts [1] - The decision to close the roastery may reflect changing consumer preferences and the company's strategic focus [1] Industry Summary - The closure of a high-profile location like the Reserve Roastery could indicate broader trends within the coffee industry, particularly in the premium segment [1] - This move may also suggest a reevaluation of physical retail strategies in response to evolving market dynamics [1]

We mentioned Starbucks approving a restructuring plan that includes job cuts and store closures. Let's talk about that with Bloomberg. Shelly Banjo.She's our managing editor for Global Business. And Shelly, this is Brian Nichols, second round of job cuts since he took over a little over a year ago. Since then, Starbucks shares are down 6%.So like, is he going to finally do something to make these moves in the right direction. I think that's what investors are hoping. We saw the shares pretty much flat on th ...

Core Viewpoint - Starbucks has approved a restructuring plan that includes job cuts and store closures, marking the second round of job cuts since the new leadership took over, with shares down 6% since then [1] Group 1: Restructuring Plan - The restructuring plan involves significant job cuts and the closure of underperforming stores, which investors hope will lead to a more efficient operation [1][2] - The company plans to refurbish about 1,000 stores and aims to start building new locations next year [3] Group 2: Investor Sentiment - Investors are looking for deeper cuts and a more comprehensive approach to right-sizing the store portfolio [2] - There is skepticism regarding the effectiveness of the current turnaround measures, as the company has made several announcements that may not address core operational issues [4] Group 3: Financial Implications - The restructuring will incur costs of approximately $1 billion, which may negatively impact public perception due to job losses and store closures [5] - The company faces challenges in executing the restructuring while maintaining customer engagement and brand reputation [5]