Starbucks and its baristas’ union are set to resume contract bargaining, with workers feeling emboldened by the CEO’s acknowledgment of the need for improvements. The company recently reported a challenging quarter, with a decline in same-store sales and traffic. CEO Laxman Narasimhan mentioned the need to address issues such as incomplete mobile app orders and a decrease in occasional customers. He highlighted the company’s focus on creating a more stable environment for partners through investments in equipment innovation, process improvements, staffing, scheduling, and waste reduction.
The organizing efforts by Workers United, the union behind the Starbucks organizing, began three years ago in Buffalo, New York. Initially, Starbucks was known for its progressive benefits for workers. However, baristas, inspired by their experiences during the Covid-19 pandemic, pushed for changes in the company’s cafes. After successful negotiations last month, both sides have made significant progress in contract bargaining. CEO Narasimhan’s acknowledgment of the staffing issues was promising to the union, as they have consistently ranked “staffing and scheduling” as their highest priority issue.
Starbucks has been working on improving staffing and scheduling over the past two years. The company’s advanced staffing model takes into account historical and current trends to allocate hours efficiently. Starbucks claims that partners now receive more hours and that partner retention and sentiment have increased as schedules become more stable and consistent. However, the union continues to push for better pay and benefits.
Staffing improvements will be crucial for Starbucks as it projects an increase in traffic and orders. In July, the company plans to open its mobile order and pay app to nonrewards members, aiming to win back its occasional customer base. To address customer ticket times, Starbucks will introduce the Siren System in 1,000 stores. This system includes new equipment and protocols to reduce steps for baristas and ensure faster service.
Former Starbucks CEO Howard Schultz has also called for change at Starbucks stores, emphasizing the need for management to spend more time with workers to understand ongoing challenges. Schultz’s statement marks a shift in tone from when he responded to the union challenge with a more combative attitude. Narasimhan, who was mentored by Schultz, has shown a willingness to address the company’s issues and prioritize the customer experience.
In conclusion, Starbucks and its baristas’ union are making progress in their contract bargaining. The CEO’s acknowledgment of the need for improvements, along with the company’s efforts to address staffing and scheduling issues, signals a positive step forward. The introduction of the Siren System and the expansion of the mobile order and pay app show Starbucks’ commitment to enhancing the customer experience. By addressing these challenges, Starbucks aims to regain its customer base and ensure a satisfying work environment for its partners.
