
Recently, Starbucks prices have risen significantly.
With a cup of Americano nearing $5, it's becoming a burden for office workers who used to buy it every day.
What used to be a habit of stopping by Starbucks has now turned into the option of "Should I just pass today?"
In this situation, employees are struggling more, and customers are decreasing, leading to a vicious cycle of crisis.
It's been exactly one year since Nicole became CEO, and the stock price has dropped by 12% while sales have not rebounded.
Starbucks was more than just a café chain; it was part of urbanites' morning routines and afternoon breaks, a workspace for freelancers, but if the number of Starbucks locations decreases, our daily lives will change accordingly.
Of course, while some stores are closing, new ones will open after remodeling.
I heard in the news that Starbucks announced it would close stores and reduce the number of headquarters employees.
CEO Brian Nicole stated that significant surgery is needed to save the company, planning to close hundreds of North American stores, reducing the total to 18,300. The restructuring cost alone is $1 billion, which is indeed a huge expense for a large company.
In a letter to employees, Nicole mentioned that stores that do not perform or cannot provide the space desired by customers and partners will be closed.
While underperforming stores have been closed before, this is not just a simple adjustment but a movement towards a bigger picture.
The problem is that these changes do not stop at the headquarters level but directly burden the employees on the ground.
Starbucks has announced plans to remodel over 1,000 stores, emphasizing a cozier space, plenty of outlets, and a warm atmosphere, which sounds good.
However, with the simultaneous closure of stores and the second round of layoffs at headquarters this year, the atmosphere cannot be bright.
There have even been lawsuits over uniform issues, and menu changes have become a headache for baristas.
Although they have reduced the menu by 30%, the addition of new items like protein toppings and coconut water has made preparation more complicated.
During peak lunch hours, with long lines of customers, baristas might be thinking, "When am I supposed to make all this?"
But the important thing is whether Starbucks can truly listen to the voices of both customers and employees to overcome this crisis. If they recklessly restructure and only raise prices to save the company, it could ultimately shake brand loyalty.
Now, Starbucks stands at a crossroads: will it establish itself as "our neighborhood favorite" or remain just an expensive coffee shop?



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