Starbucks has agreed to pay approximately $35 million to over 15,000 New York City workers to settle claims related to unstable schedules and arbitrary hour cuts. The company will also pay $3.4 million in civil penalties and must comply with the city’s Fair Workweek law moving forward. Investigations, launched in 2022 due to numerous worker complaints, revealed that most employees faced irregular schedules and reduced hours, hindering their ability to plan. This settlement also includes reinstatement opportunities for employees laid off during recent store closures.
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AP News reports Starbucks is partnering with Boyu Capital to operate its stores in China through a joint venture, with Boyu acquiring a 60% interest for $4 billion. Starbucks will retain 40% ownership and the Starbucks brand. This partnership aims to accelerate growth, especially in smaller Chinese cities, leveraging Boyu’s local expertise. The deal, expected to finalize in the second quarter of Starbucks’ 2026 fiscal year, comes as Starbucks faces competition from local brands and looks to expand its presence in China, its second-largest market.
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Starbucks is undertaking major restructuring efforts to address its struggling business, including closing approximately 1% of its North American locations, or several hundred stores. The closures are due to various reasons, including underperformance and inability to meet customer expectations. These initiatives, led by CEO Brian Niccol, are expected to cost $1 billion and will be followed by a second round of corporate layoffs. Simultaneously, Starbucks plans to remodel over 1,000 locations and implement menu and branding changes to revitalize the chain after Niccol’s first year.
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A recent social media video claimed a Norwood Park Starbucks employee wrote “Loser” on a drink in honor of the late conservative activist Charlie Kirk, sparking online outrage and the temporary closure of the store. However, Starbucks has stated that time-stamped footage does not show any employees writing the message, suggesting it was added after the beverage was handed off. The controversy began with a post from Jacqueline Garretson, who stated a relative’s drink order was defaced. Starbucks responded by clarifying its policy on name usage in orders, stating that names, on their own, can be used.
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Starbucks is mandating a return to the office for some remote employees, increasing the required in-office days for corporate employees to four per week, starting in early October. In addition, “people leaders” must now be based in Seattle or Toronto within a year, a tightening of previous relocation requirements. While affected employees who choose not to relocate will be eligible for a voluntary exit program. The company’s CEO, Brian Niccol, has also relocated to Seattle since his hiring last year.
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Starbucks CEO receives nearly $96 million in compensation. This staggering figure has sparked considerable debate, with many questioning whether such a substantial sum is justified for leading a coffee company, however large and successful. The sheer magnitude of the compensation is enough to raise eyebrows; it’s a sum that dwarfs the annual earnings of thousands of average Americans. Some have pointed out the irony of a CEO earning such an immense amount while the company simultaneously faces challenges, including potential layoffs.
The disparity between the CEO’s compensation and the wages of average Starbucks employees is stark and fuels much of the outrage.… Continue reading
Starbucks is ending its seven-year-old open-door policy, requiring all patrons to make a purchase to utilize store amenities like restrooms or Wi-Fi. This new code of conduct, impacting all North American company-owned stores, also prohibits disruptive behaviors such as alcohol consumption, drug use, and harassment. The shift prioritizes paying customers and aims to create a more welcoming environment, addressing safety concerns and unruly behavior that have escalated in recent years. The policy change comes under new leadership, seeking to revitalize the brand’s image as a community hub.
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Starbucks, a company that prides itself on its “green commitment” and sustainability goals, has made a questionable decision by allowing its new CEO, Brian Niccol, to supercommute 1,000 miles from California to Seattle on a corporate jet. The hypocrisy of this situation is glaring, especially when we consider the recent push to reduce plastic content in their cups by a mere 3%. As a consumer who is conscious of the environmental impact of my choices, this news is incredibly disappointing.
The idea of a CEO, who is already a millionaire, choosing to supercommute on a private jet instead of simply buying a house closer to the headquarters is absurd.… Continue reading
Starbucks is giving incoming CEO Brian Niccol a whopping $85 million in cash and stock as he departs Chipotle. This mind-boggling amount highlights the stark disparities in our society. While CEOs like Niccol rake in millions, front-line workers struggle to make ends meet. It leaves me questioning the logic and fairness behind such exorbitant payouts to corporate executives.
In his first year alone, Niccol’s pay package could reach a staggering $116.8 million if certain targets are met. This level of compensation is truly outrageous, especially when hourly employees don’t see a significant increase in their wages. It’s disheartening to see the widening gap between top executives’ salaries and the rest of the workforce.… Continue reading
Starbucks fires CEO Laxman Narasimhan. It appears that the 62% profit margin on those pricey coffee drinks wasn’t enough to keep him in the top spot. The decision to replace him with Chipotle CEO Brian Niccol has definitely raised some eyebrows. As a former Starbucks employee, I understand the frustration of customers feeling ripped off by the high prices and skimpy portions. The whole charm of Starbucks used to be its social environment, but now most stores are just a drive-through experience. The new interiors are bland and uninviting, lacking the atmosphere that justified the premium prices in the past.
It’s no secret that Starbucks has been facing a decline in profits, but is it solely the CEO’s fault?… Continue reading
John Q. Hosedrinker 
Matt Underwood