Starbucks(US:SBUX) CNBC Television·2025-10-15 23:48Business Performance & Strategy - Starbucks expects its China business to be worth over $10 million, including upfront investment and future royalties [1] - The company closed 1% of its stores, focusing on underperforming locations or those not suitable for a coffee house experience [3][4] - Starbucks aims to improve the experience in licensed stores, including those in airports and Targets [15][16] - Starbucks' turnover is now lower than 50%, indicating positive changes in employee satisfaction [20] Operational Improvements - Starbucks is implementing a "Green Apron service model" to improve customer service by deploying more partners in stores and focusing on customer connection [1][2] - The company is uplifting stores to return them to a coffee house atmosphere, emphasizing the "third place" concept [1] - Starbucks is using "smart Q" technology to sequence orders for drive-thru, counter, and mobile order pickup [1] - The company is reinvesting over $500 million into stores and partners [21] Challenges & Recovery - Starbucks had previously focused too much on efficiency, leading to reduced labor and a decline in the coffee house experience [8][9] - Pricing and labor issues contributed to a deterioration in business performance, which the company is now correcting [9][10]