Starbucks' Big Plan to Win Back Hearts and Minds

Starbucks is on a mission to win back customers and investors, but it's also focusing on its employees. The company's new CEO, Brian Niccol, has been working hard to bring back the company's original vibe. He recently hosted a big event in Las Vegas for over 14, 000 store leaders. There, he unveiled a new coffee blend called the 1971 Roast, a nod to the year Starbucks opened its first store. The event was all about bringing back the old Starbucks feel, with even the Wi-Fi password being "backtostarbucks! " Niccol has a multi-step plan to turn things around. He wants to improve marketing, fix the mobile app, and make stores more inviting. The company has already cut about 1, 100 corporate jobs to run more efficiently. Since April, Starbucks shares have gone up nearly 20%. But it's not just about the money. Starbucks wants to regain the trust of its employees too. There have been long-standing issues about hours and workloads, which have led to union pushes. To excite store managers, Starbucks is giving them more control. Before launching new drinks, they're testing them in a few stores to get feedback from baristas. When the chain adds more staff this summer, managers will have a say in how many baristas they need. Next year, most North American stores will get an assistant manager. Niccol reminded everyone that coffee, community, and opportunity are what make Starbucks special. Niccol's plan is all about fixing the company's culture. The Leadership Experience event was the first in three years, and it was all about connecting and being human. More customers are ordering through the app, which has changed the vibe of the cafes. To bring back the old culture, Starbucks is reversing some past decisions, like removing seats from cafes. In recent years, they've taken out 30, 000 seats, which has upset both customers and employees. Niccol promised to put those seats back in, which got a big applause from the crowd. He also talked about promoting from within as they add more locations. This means more career opportunities for store leaders. Staffing has been a big issue for Starbucks. Past management teams have cut labor to boost profits, but this has burned out baristas and slowed service. Niccol is changing this trend. The company is speeding up plans to roll out its new Green Apron labor model. This model improves service times and boosts traffic. Managers will have more say in how much labor their store needs. Sara Kelly, the Chief Partner Officer, got a standing ovation for announcing that most North American locations will get a full-time assistant manager next year. She talked about how managers often feel the weight of everything on their shoulders, even when they're not in the store. This affects everything from the partner experience to the performance of the store. The event also featured speeches from former chairwoman Mellody Hobson and former CEO Howard Schultz. Both got standing ovations. Hobson thanked the employees for always making her feel welcome. She stepped down earlier this year after a long tenure. Schultz, a longtime friend of Hobson's, also got a warm welcome. Niccol credited Hobson with bringing him to Starbucks from Chipotle. He said a quick conversation with her turned into something special for him. The event was all about looking back and looking forward, with a focus on what makes Starbucks unique.