In 2008, Starbucks investors were pushing CEO Howard Shultz to cut costs in the coffee chain.
One person has a new idea for saving money, Schultz said in a 2010 interview: Why not stop health benefits for Starbucks employees temporarily? Schultz turned down the offer, he told Fortune, and suggested that the investor consider selling his stock.
But for one Starbucks employee at a North Carolina cafe who has been with the company for 19 years, Schultz’s decision on health benefits reflects what Starbucks has always been.
“It used to be a great place to work,” the employee said. and company.” The employee asked not to be identified for this article, citing fears of retaliation from Starbucks, but Business Insider has confirmed his identity and work for the company.
Starbucks is across the street. The company has spent years fighting with workers at hundreds of stores as they try to form a union and collective bargaining agreement — although Starbucks said this year it would sit down with those the work is interactive.
The company is also in the midst of a CEO change. Starbucks said last month that Chipotle CEO Brian Niccol will replace Laxman Narasimhan as CEO as of September 9. The change comes as Starbucks faces slumping sales in the US, long customer wait times, and challenge to his business in China.
Besides continuing health care options for part-time workers, the North Carolina employee pointed to the company’s stock-giving program, called Bean Stock, and its decision to call store employees “partners.” .” Starbucks was founded in 1991, during Schultz’s tenure as CEO.
The employee, who started working at Starbucks in the mid-2000s, said the company had a reputation for treating employees well when he joined. But changes in the past few years, such as reduced staffing levels in his stores and an increasing number of mobile orders, have changed that image, he said.
Starbucks locations where an employee currently works have two or three people working multiple shifts, down to five a few years ago, he said. That allows partners to stretch, especially with regular orders placed through the Starbucks app, and less time to serve customers who order in-store.
“It started out as a popular coffee shop operation, but it’s just turned into a soulless fast food empire since then,” the employee said.
“Since Howard left, I said things have really gone down,” he added, referring to the time when Schultz stepped down as CEO in 2017.
A Starbucks spokesperson said the company is seeking feedback from employees through surveys and meetings between employees and management. Conservation officers “have many opportunities throughout the year to express their opinions, share their experiences, and suggest areas for improvement,” a spokeswoman said.
Wall Street analysts have hailed incoming CEO Niccol as the turnaround expert that Starbucks needs, citing Chipotle’s stock price multiple times during his tenure.
But a Starbucks employee at a North Carolina store isn’t optimistic. He told BI that he doubts Niccol will solve the problems he sees in his stores, including chronic shortages of working hours and an increase in phone orders that keep workers in – work hard.
A Starbucks spokeswoman declined to comment on any initial plans Niccol has for wages or working conditions. A spokeswoman said barista wages range “from $15.25 to $26 per hour.”
The North Carolina employee pointed to another reason he wasn’t expecting it: Chipotle is close to the Starbucks where he works.
“No matter what time of day I come in, they’re always angry,” he said of the Chipotle workers he sees there. “And it seems like sometimes they don’t have enough people working.”
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