Starbucks Throttles Operations at US Coffee Plants to Curb Costs

Starbucks Corp., the company’s brown and package of coffee beans in the United States, plants, as part of the management’s efforts to reduce costs, two -day production cuts per week.

Five plants in Georgia, South Carolina, Pennsylvania, Nevada and Washington will adopt the new five -day program in January, according to people who are familiar with the issue that wants to be named to discuss the operations of the company.

Starbucks, who wanted to reduce costs in some areas to help them pay up to another place, found that payment for upgrades elsewhere did not have to be employed for seven days a week. Plants work 24 hours a day.

The facilities produce some of the packaged coffee sold under the Starbucks brand of the chain for their own stores and other retailers. The company does not explain the number of workers in plants.

Starbucks refrained from commenting.

According to the annual report, the company makes most of its own coffee buying, roasting, packaging and distribution. For example, the facility in Augusta, Georgia is making almost all Frappuccino dust that the company uses worldwide. According to the company’s website, it also produces most of Starbucks’s blonde espresso fries.

Starbucks is trying to return at six quarters of the same store sales. The plan of Brian Niccol, Chairman of the Executive Board, is to make more customers to the company’s cafes by making it more inviting. Thus, the locations get more seats and elevated decor with electrical sockets.

The menu also receives a revision and tries to reduce the waiting times and improve customer service.

Chief Finance Manager Cathy Smith said that the company should manage expenditures to finance initiatives with $ 500 million to add personnel to the stores. To compensate, Starbucks asked the managers to restrain expenditures, and only offers a $ 6 million stock grant if the company meets the goal of reducing operating expenses.

Smith said in the company’s July July call to use a healthier and more efficient cost structure to balance these investments, ”he said.

Although analysts have reduced their expectations in recent weeks, they expect Starbucks’ same store sales to increase in the current quarter.

The restaurant industry is involved in a difficult environment as the consumer feeling is swinging in response to the sudden changes in President Donald Trump’s trade policy. The Americans also expect inflation to receive and that business growth has slowed down significantly and points to the cracks in the economy.

In addition to US plants, Starbucks also has roasting, production and distribution facilities in the Netherlands, India and China. The company says that it purchases 3% of world coffee every year to supply its business covering and co -operated by more than 41,000 companies worldwide.

Nestlé SA has Starbucks branded coffee selling license in supermarkets and other places. In some cases Nestlé, according to Starbucks’s annual report, coffee fry and pack them for these products.

As of September 2024, Starbucks employed 211,000 people in the United States and works in more than 95% of this total stores. The rest also worked in production, storage and distribution operations in corporate offices and teams responsible for building stores.

Earlier this year, the company dismissed approximately 1,100 office workers. Damages did not affect plants or cafes.

This article was created from an automatic news agency feeding without changing the text.