grown by 24% so far this year. “It’s clear that our physical stores have to change. Our physical stores were built for a different era,” said John Culver, Starbucks’ chief operating officer, at a day-long event for investors in Seattle Tuesday.
VIDEO: Starbucks to revamp storesSEATTLE — Starbucks – ringing up record sales but struggling with low employee morale – plans to spend $450 million next year to make its North American stores more efficient and less complex.
Culver said customizable cold drinks, which now make up as many as 75% of Starbucks’ U.S. beverage orders, are taxing employees in kitchens designed for simpler hot drinks. Starbucks debuted a new workstation that requires less movement and can cut 50 seconds off the process of making a blended iced mocha. It also announced a new patented technology that will cut the time needed to make cold brew coffee from 20 hours to a few seconds.
“The reality is, we have a trust deficit with our partners,” said Frank Britt, Starbucks’ executive vice president and chief strategy officer. “The work we do in our stores today is too physically hard.” Starbucks Workers United, the union organizing workers, said around 300 protesters picketed outside the Starbucks meeting on Tuesday.
last week. Narasimhan will spend the next six months shadowing interim CEO Howard Schultz, who helped shape the company after buying it in 1987 and has been leading it on a temporary basis since April. Schultz will remain on Starbucks’ board when Narasimhan assumes the CEO position in April.
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