Starbucks will hire more baristas and scale back plans to roll out automation, the coffee shop giant's chief executive Brian Niccol says. The move, which is part of his strategy to win back customers, comes as other food and drink chains increasingly adopt technology to cut costs. Also on Tuesday, the firm announced worse-than-expected financial results as its sales continue to fall. Mr Niccol was brought into Starbucks last year tasked with turning the business around as it struggles with rising prices and consumers cut back spending. "Over the last couple of years, we've actually been removing labour from the stores. I think with the hope that equipment could offset the removal of the labour," Mr Niccol said during a call with investors. "What we're finding is... that wasn't an accurate assumption with what played out." Increasing staff numbers was tested in a handful of stores around the time Mr Niccol joined the firm in September 2024. He has been expanding the approach to include around 3,000 stores this year. Mr Niccol highlighted that taking on more staff would mean higher costs but said he was "banking on some growth to come with the investment". Alongside recruiting more baristas, Starbucks is also revamping its coffee shops, menus and the company's dress code. Starbucks said in April that its baristas would wear dark, single coloured shirts to "allow our iconic green apron to shine and create a sense of familiarity for our customers".
BBQ - Can Brian Niccol turn around Starbucks? Will more staff be the best decision?
