Additional Coverage:
- A Starbucks worker of nearly 20 years says the chain has gone from ‘quirky coffee shop’ to ‘soulless fast food empire’ (newsbreak.com)
A Starbucks veteran believes the company was better managed under its previous CEO Howard Schultz. The coffee giant is currently facing significant changes with Brian Niccol, formerly CEO of Chipotle, poised to take charge amid challenges like declining U.S. sales and operational difficulties in China.
In 2008, amidst financial strains, Starbucks was advised by an investor to cut costs by dropping health benefits for part-time employees, a suggestion Howard Schultz rejected, favoring employee welfare over immediate financial benefit. Schultz, who has faced criticism for various issues including the company’s approach to unionization and certain product choices, is still appreciated by some employees for his commitment to worker benefits.
A North Carolina Starbucks employee, who wished to remain anonymous, told Business Insider that the company has increasingly resembled its fast-food competitors in recent years, moving away from what it once was—a company celebrated for its treatment of employees, demonstrated through initiatives like healthcare for part-time staff and a stock grant program since the early 1990s.
This employee has observed worsening conditions, pointing to reduced staff per shift which makes it challenging to manage burgeoning mobile orders in addition to in-store requests. The change in dynamics has left employees stretched thin, turning what was once considered a trendy coffee shop job into what he described as a “soulless fast food empire.”
With the upcoming CEO transition on September 9, some employees remain pessimistic about future improvements in working conditions, despite Niccol’s success in boosting Chipotle’s stock value during his tenure. Concerns remain especially around issues like understaffing and the pressure from increased mobile orders.
Starbucks maintains that it consistently seeks employee input through surveys and meetings to enhance their experience and operational efficiency. However, specifics on Niccol’s plans for employee compensation or working conditions remain undisclosed.
Adding to the unease is the observation by the North Carolina Starbucks employee of local Chipotle staff appearing discontent and understaffed—conditions he fears may become more common at Starbucks under new leadership.