Starbucks recently implemented a $1 billion restructuring plan, closing hundreds of underperforming company-operated stores in North America, which triggered a wave of mass layoffs. In front of the global headquarters in Seattle's SoDo district, baristas and union members gathered to protest, holding up signs to express strong dissatisfaction with the company's decisions. Laid-off employees said they only learned of their job losses through prerecorded phone calls and social media, without being offered any opportunity to transfer. Union data shows that 59 unionized stores across the United States were permanently closed in this round of adjustments, with 369 people in Washington State facing permanent layoffs. Meanwhile, New York City regulators also pointed out that Starbucks is suspected of violating labor laws. This labor conflict is continuing to escalate, and the union stated that if their demands are not addressed, they do not rule out expanding actions or even going on strike. [more…]

Starbucks recently announced the launch of a restructuring plan totaling US$1 billion, involving the closure of underperforming company-operated stores and a new round of layoffs. According to a filing submitted to the U.S. Securities and Exchange Commission, most of the store closures will be completed before the end of fiscal 2025, with US$150 million for employee severance and US$85 million covering lease termination and asset disposal costs. CEO Niccol said in an open letter to employees that some stores failed to meet financial targets or create the environment customers expect, so the decision was made to immediately close some stores in North America. Foreign media reports say the restructuring will affect hundreds of coffee shops in the United States and Canada, including the world's first Roastery in Seattle's Capitol Hill and the SODO Reserve store in the company's headquarters building. This Roastery, which opened in 2014, is not only a pilgrimage site for Starbucks fans but also one of the first unionized stores in the brand's history, and its permanent closure without warning has sparked employee speculation about union suppression. At the same time, about 900 non-retail employees will receive layoff notices, marking the second round of layoffs since Niccol took office. Although the Europe, Middle East and Africa business is proceeding as planned, some stores in the UK, Switzerland and Austria will also close due to a portfolio review. [more…]

Recently, Sina Finance exclusively reported that Heytea had initiated internal layoffs involving about 30% of its employees, and the news quickly sparked widespread discussion. Heytea responded promptly, saying the report was untrue and that there was only normal personnel optimization based on year-end performance reviews. This incident has once again drawn public attention back to the new-style tea beverage sector: Nayuki is expecting losses, Heytea's growth is slowing, store expansion is decelerating, and homogenized competition in the industry is becoming increasingly fierce. At the same time, Heytea's countercyclical price cuts and moves to tap lower-tier markets have also sparked discussion. This article will sort out the sequence of events and present Heytea's operational changes and market challenges since 2021. [more…]

Starbucks recently announced the launch of a corporate team restructuring and plans for layoffs, with specific positions and numbers to be announced in March. Meanwhile, Starbucks China Chairwoman Wang Jingying has decided to retire, and lead independent director Mellody Hobson has also announced she will not seek re-election, with two senior executives departing in quick succession within just a few days. CEO Brian Niccol stated that the adjustments are aimed at simplifying the management structure and improving decision-making efficiency, and will not affect store baristas. During Wang Jingying's tenure leading the China business, stores expanded from more than 400 to over 7,000, making China Starbucks' fastest-growing overseas market. [more…]

Starbucks is undergoing a profound transformation. In response to persistently declining sales, the company has announced it will lay off 1,100 corporate employees worldwide and freeze hiring for hundreds of open positions, while also planning to cut 30% of its menu offerings. New CEO Brian Niccol stated that the move aims to reduce management layers, improve decision-making efficiency, and make the corporate structure leaner and more agile. The first round of menu adjustments will take effect on March 4, involving 13 beverages including Frappuccinos and Royal English Tea Lattes. Whether this transformation can help Starbucks regain its growth momentum is something the industry is watching closely. [more…]

In the coffee sector, nearly 90,000 new stores have opened in the past year, with a net increase of over 48,000, and amid fierce competition, brands are rolling out various strategies. Cotti, which ranks third in store scale, however, chose to cross over into tea beverages in April, launching new milk tea and fruit tea products unrelated to coffee, which is puzzling—after all, it already owns the tea brand Chamao, which focuses on human-machine collaboration. Behind this strategy is the reality that franchisees are increasingly seeing no hope of profitability and are exiting to cut losses. A franchisee in Hubei reported that the foot traffic data provided during recruitment was severely inflated, and the data used by third-party assessment software was actually outdated from several years ago. The brand relied on these impressive figures to set a record of opening 7,000 stores in 14 months. Now, according to Jihai brand monitoring, Cotti has closed 250 stores in the past 90 days, equivalent to three per day, while Luckin, with more than twice the total number of stores, closed only 89 in the same period. Negative news such as salary cuts, layoffs, and the founder being forced to execute 3 billion yuan in debts has followed one after another, and franchisees are no longer willing to be mere also-rans. [more…]

Competition in the new-style tea beverage sector is becoming increasingly fierce, with brands constantly adjusting their strategies on products and pricing. Heytea has made a flurry of moves recently: on one hand, it announced that it will not raise prices this year and will no longer launch drinks priced above 30 yuan; on the other hand, its affiliated company added fruit cultivation to its business scope, attempting to control costs from the source. At the same time, Heytea is also facing controversies over layoffs and internal management. This article will sort out the logic behind Heytea's moves, as well as the trend of the new-style tea beverage industry extending upstream into cultivation, and will also briefly discuss the similar path in the coffee sector from brewing to cultivation. [more…]

Closing cleaning in the food and beverage industry has always been a major burden for late-shift employees, and coffee and tea shops are no exception. Recently, some Chagee stores have begun outsourcing closing-time cleaning to third-party professional teams, allowing many employees to get off work on time and even saving on parts replacement costs thanks to thorough equipment cleaning. However, this measure does not benefit all stores: franchise stores need to pay an additional service fee to apply for outsourced staff, and outsourcing only covers daily cleaning, while regular maintenance is still handled by store employees. What worries workers even more is that some franchise store managers have said that if outsourced closing is introduced, they may consider reducing staffing to control costs. Convenience and risk coexist—can outsourced closing truly let employees relax once and for all? [more…]

Starbucks has recently fallen into operational difficulties once again. After Howard Schultz returned in April this year, he implemented a series of bold measures, sparking widespread discussion about the brand's prospects. In fact, this is not the first time Schultz has saved Starbucks in a similar manner—during the 2008 financial crisis, he also led the company out of its trough by closing stores, laying off employees, and reshaping corporate culture. This article reviews how Starbucks restored growth back then through consumer lifestyle research, the "My Starbucks Idea" campaign, rebuilding partner relationships, and direct sourcing, and analyzes the new challenges that unionization efforts under the current pandemic background bring to the brand, as well as the relationship-rebuilding plan Schultz has launched for store partners after his return this time. [more…]

There are countless pour-over coffee brewing methods, but the core variables that truly determine flavor are simply grind size, water temperature, and the coffee-to-water ratio. Yet these seemingly simple parameters and circular pouring make it hard for many people to consistently reproduce a good cup of coffee. Machines are naturally superior to humans in consistency—does this mean baristas will eventually lose their jobs? Front Street has a bold prediction: mechanized production roles may be replaced, but baristas who truly understand brewing logic will move behind the scenes, responsible for formulating and adjusting plans. This article starts from standard brewing methods and explores the relationship between technique, understanding, and the future of baristas. [more…]

On his first day back as Starbucks CEO, Howard Schultz announced a pause on the stock buyback program, redirecting funds toward employee benefits and store operations. Behind this decision is a wave of unionization among U.S. Starbucks partners, driven by intense workloads and stagnant benefits. So far, 10 stores have voted to form unions, and more than 170 stores have applied to join. Schultz admitted that the company had let employees down in addressing store operations issues, and plans to invest $1 billion in wages, training, and benefits. This article examines the context of this transformation initiative and its impact on Starbucks' future operations. [more…]

Recently, Starbucks was reported to conduct detailed audits of partners' daily operations by randomly accessing store surveillance footage, and listed as many as 8 violations in an internal email. From placing trash can lids on countertops to inadequate cleaning and sanitizing procedures for ice storage bins, these details that might previously have been overlooked have now become grounds for warning notices or even dismissal. After the news spread, many current employees felt greatly increased pressure, while consumers generally supported this strict oversight. This article sorts out the sequence of events, presents multiple perspectives, and explores the difficult balance that chain coffee brands must strike between food safety management and employee execution. [more…]

Since the outbreak of the Israeli-Palestinian conflict, American chain brands have faced waves of boycotts in Muslim-majority regions, with Starbucks bearing the brunt. In Malaysia, a Muslim-majority country, local consumers' boycott of Starbucks has led to a sharp drop in foot traffic. The latest financial report from franchise operator Berjaya Food shows that in the first half of this year, its Starbucks business suffered a massive loss of 87.34 million ringgit (approximately 143 million RMB). To reverse the decline, Berjaya Food has repeatedly stated that Starbucks Malaysia is wholly owned by a local listed company, with employees almost entirely local and mostly Muslim, in an attempt to distance itself from the US headquarters. However, the boycott continues, even affecting employees' livelihoods and stock performance. How this situation will unfold and whether Starbucks can regain local consumers' trust is worth watching. [more…]

Starbucks has released its first quarterly report for fiscal year 2026, showing a strong rebound in same-store sales, with global growth of 4%, and growth of 4% and 7% in the U.S. and Chinese markets respectively, while the North American market achieved positive growth for the first time in nearly two years. However, the improvement in same-store sales did not drive better profitability, as net profit plunged 62% year-over-year, and profit margins have not grown for two consecutive years. Meanwhile, Starbucks' stock price fell 7.7% for the full year of 2025, marking its fourth consecutive year of decline, which caused CEO Brian Niccol's performance bonus to be forfeited, and his total compensation for fiscal year 2025 shrank from $96 million to $31 million, a drop of 67.7%. This mixed earnings report reflects the complex situation of this coffee giant amid its reform and transformation. [more…]

Recently, Manner Coffee has drawn widespread attention after suddenly cutting the hourly wages of its part-time employees. Some part-timers discovered that, even with the same number of scheduled hours for the coming month, their daily income was nearly forty yuan less. It is understood that this wage cut affects multiple regions, with reductions ranging from 1 yuan to 6 yuan, including Shanghai dropping from 28 yuan to 24 yuan and Shenzhen from 28 yuan to 22 yuan. After the news spread, discussions in part-time worker groups became heated, and the brand at one point restored the original hourly wage, only to cut it again less than two hours later, leaving many employees caught off guard. Coming right at the peak summer sales season, whether this move will affect store operations and the stability of the part-time team is worth continued attention. [more…]

Recently, the news of a fresh master's graduate choosing to join Luckin as a part-time barista has sparked widespread discussion online. Supporters believe that no occupation is superior or inferior, and that young people should try more things; opponents feel that this is a waste of a diploma. In fact, as the number of graduate students in universities surpasses that of undergraduates, under the dual pressure of degree devaluation and economic downturn, more and more highly educated young people are turning their attention to light physical service industries such as coffee and tea drinks. They either want to escape the high-pressure, hyper-competitive office environment, or use it as a transitional job. However, is the real experience behind the bar counter of chain brands as relaxed and comfortable as imagined? This article deeply explores the multiple motivations and real dilemmas behind this phenomenon. [more…]

Taiwan, China-based chain brand Seattle Premium Coffee was found to have blended Robusta into several pre-packaged bean products labeled "100% Arabica," prompting prosecutors to charge founder Liu and two others with adulteration and misrepresentation. The brand initially argued that Timorese/Timor varieties are a hybrid of the two species, then later changed its statement, saying it was an administrative oversight that the labels were not updated, and was willing to recall only some batches. The court calculated criminal proceeds at approximately 4.07 million yuan, and Liu sought to pay a public welfare fund in exchange for a suspended sentence. The core dispute in the case is that adding Robusta itself is not illegal, but whether a mismatch between the label and contents constitutes adulteration and misrepresentation under food safety law. This article sorts through the sequence of events, test data, and new courtroom statements, so coffee enthusiasts can understand industry labeling standards. [more…]