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Starbucks intends to invest $450 million next year to make its North American locations more efficient and less complicated, despite record sales and low staff morale.

In addition, the firm stated that it intends to establish 2,000 net new locations in the United States by 2025, with an emphasis on addressing the rising demand for new sorts of services such as drive-thru, smartphone ordering, and delivery. For example, drive-thrus now account for 50% of US sales, while delivery demand has increased by 24% this year.

“It’s apparent that our physical stores must evolve. “Our physical locations were created for a different period,” said Starbucks’ chief operating officer, John Culver, at a day-long investor presentation in Seattle on Tuesday.
During morning presentations Tuesday, Starbucks executives made no mention of a burgeoning unionization push at its US outlets. However, it has obviously served as a catalyst for the corporation to think more carefully about how to enhance workers’ working lives. Starbucks’ 9,000 corporate-owned US locations have voted to unionize since late last year, an endeavor the business opposes.

“The fact is that we have a trust deficit with our partners,” said Starbucks executive vice president and chief strategy officer Frank Britt. “Today’s labor at our stores is too physically demanding.”

Laxman Narasimhan, a former PepsiCo executive who was chosen Starbucks’ CEO last week, will spearhead the transformation. Narasimhan will spend the next six months observing interim CEO Howard Schultz, who helped develop the firm after purchasing it in 1987 and has been temporarily heading it since April. When Narasimhan takes over as CEO of Starbucks in April, Schultz will continue on the board.

“It’s a great chance for me to learn at the feet of one of the world’s best entrepreneurs,” Narasimhan said.

Starbucks had its biggest sales week in its 51-year existence in August, according to Schultz, when it unveiled its autumn drink selection. Starbucks, according to Schultz, lost its footing during the epidemic, when staff retention plummeted even as consumers sought additional services such as curbside pickup.

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