Starbucks Corp. plans to raise salaries for its salaried employees by 2%, a move that falls short of the Consumer Price Index increase. This decision raises concerns about employee morale, especially as mediocre managers will receive the same raises as high performers. CEO Brian Niccol has faced criticism for several misjudgments, including his choice to enforce a strict office attendance policy and implement a new uniform dress code for baristas. While some steps like menu reduction have been positive, significant problems remain, including stock shortages affecting customer satisfaction. The company's stock has seen a decline of 2% under Niccol's leadership.
Starbucks Corp.'s CEO, Brian Niccol, has announced a 2% pay raise for salaried workers, which falls below the Consumer Price Index increase, prompting dissatisfaction among employees.
Management's decision to issue a uniform policy for baristas aims to create familiarity across stores, yet it does not guarantee improved customer experience or employee morale.
Despite reducing menu items to improve service speed, Starbucks still faces issues with stock shortages throughout the day, disappointing customer expectations.
The stock performance of Starbucks has declined by 2%, indicating a lack of investor confidence in Niccol's management and turnaround strategy.
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