Starbucks is shifting its strategy to focus on investing in employee hours and hiring more baristas as it seeks to turn around its business. CEO Brian Niccol announced this approach following second-quarter earnings that fell short of analyst expectations. The coffee chain is introducing an algorithm for order sequencing to improve efficiency. This transition reflects a significant change from previous years when Starbucks relied more on equipment to streamline operations. The company plans to implement the new Green Apron Service model in a third of its US stores by the end of the 2025 fiscal year.
We're finding that investments in labor rather than equipment are more effective at getting customers their orders and growing sales, Niccol said.
Over the last couple of years, we've been removing labor from the stores, I think with the hope that equipment could offset the removal of the labor.
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