Starbucks Makes Baristas Change Their Clothes

Starbucks Corp. (NASDAQ: SBUX | SBUX Price Prediction) new CEO Brian Niccol has told the coffee shop company’s baristas that he has a new dress code. In North America, baristas have to wear black shirts under their aprons. Before, they could pick their shirts without restrictions. There are also new rules about the color of barista’s pants. According to CNN, Starbucks said it would “allow our iconic green apron to shine and create a sense of familiarity for our customers.” The decision is part of a long list Niccol has released to turn around the troubled company.

The Turnaround Plan

Empowering baristas and improving service.

Niccol has also cut the Starbucks menu by about a third. He has removed items that did not sell well. The argument is that food and coffee can be delivered faster if there are fewer choices. The items removed already sell poorly.

Niccol put out a letter just after he joined, and later, an announcement about the wider changes. Last September he released “An open letter for all partners, customers and stakeholders.” He listed four goals, which included plans to “empower” baristas to serve customers better, improve morning service, bring back Starbucks as a “community coffee house,” and tell the company’s story.

In February, Niccoil released his “Back to Starbucks” plan. As part of this, he cut 1,100 management jobs and said some open jobs would not be filled. He also changed the company’s work-from-home rules.

Starbucks has struggled. A difficult 2024 was highlighted in earnings released on January 28. Comparable store sales dropped 4%, and in North America fell by the same amount. China comparable store sales declined by 6%. China is the second largest market for Starbucks after the United States.

Revenue for the most recent quarter was flat at $9.4 billion, but per-share earnings cratered 23% to $0.69.

After rising sharply when Niccol joined, this year, Starbucks stock is down 8%, which is about the same as the S&P 500. New outfits for baristas probably will not change that.

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