Each morning, many of us heed the siren song from the green and white sign to get our brew of choice. So it is no surprise that Starbucks plans to expand — but they also plan to drastically cut costs. This is its triple-prong approach to perk up the brand…
Starbucks “Triple Shot Reinvention” Cutting Costs Strategy
Recently, the coffee megacorp held its Q4 conference call for stockholders.
The C-suite execs had a lot of good news to report. Shares were up 9.5% with a market cap of $115 billion.
ADDITIONALLY, STARBUCKS RELEASED MORE DETAILS ON HOW IT WILL EXPAND WHILE CUTTING COSTS BY $3 BILLION!
Initially, the company announced its Triple Shot Reinvention Strategy in September. However, not much was known about specifics until the November 2nd call.
The three-part formula includes:
- Opening 17,000 new locations across the globe. (Very interesting considering the Starbucks brand exit from Russia in 2022)
- Doubling hourly sales income at each cafe.
- Cutting costs through efficiency.
But what exactly does that mean?
The Coffee Chain Sees the Errors of Its Ways…
For a company as MASSIVE as Starbucks, cutting costs by $3 billion is a tall order, to say the least.
For that reason, it had to call in its top guns — or man, rather — former CEO, Howard Schultz. And his conclusion was the java shops were the victim of “self-induced mistakes.”
IN SHORT, BARISTAS HAVE BEEN HAVING TO PREPARE OUR INCREASINGLY COMPLICATED BEVERAGES.
As a result, it takes more time to make less coffee.
But don’t worry. Schultz’s solution to easing Starbucks’ costs doesn’t mean you can’t get a half-caff-soy-latte-no-foam-half-pump-mocha ever again…
The former CEO wants to bring new equipment, store formats, and automation into the mix. Whether these changes will help the Seattle-based chain hit its goals is up in the air.
But if others are reliant on them as the GCTV Staff is, Starbucks will likely make money regardless…
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