Starbucks plans to introduce zero-based budgeting (ZBB) in its upcoming fiscal year, intending to cut expenses to fund its turnaround strategy. This budgeting method necessitates that managers justify every expenditure annually rather than relying on previous budgets. Executives believe ZBB will help them find valuable savings, contributing to their Back to Starbucks initiative, which includes increasing barista hours. ZBB has been used successfully by other firms but has also faced criticism for leading to excessive cuts that hinder employee performance.
"We're going to be looking at ways to grow the business and also take a really hard look through the zero-based budgeting approach to understand where else there might be some offsets."
"I love deploying a few tools like zero-based budgeting to help us get after some of those maybe-stranded costs."
Collection
[
|
...
]