Starbucks is tired of waiting for Congress to raise the minimum wage and decided to raise the minimum wage for all of their employees to $17 per hour.
The company is facing major challenges attracting new employees. This problem forced Starbucks to change their business hours in some locations to close early or move to a drive-through-only model due to worker shortage.
The company executives say they spent more than $1 billion on higher wages and benefits, but they continue to face major challenges in recruiting good employees to work for them.
Most food industry employees don't find work in the service industry rewarding anymore. They are shorthanded, and customers don't care about that fact. So they mistreat them for slow service and don't leave them any tips.
Let's Form a Union
There is a serious talk among baristas to unionize or join Workers United, Service Employees Internation Union affiliate. Starbucks opposes employees' efforts to join a union, but they can't prevent them from forming or joining a union.
The company CEO, Kevin Johnson, announced some major changes in a letter that he posted on the company Twitter account, "While Starbucks respects the free choice of our partners, we firmly believe that our work environment, coupled with our outstanding compensation and benefits, makes unions unnecessary at Starbucks."
These changes include raising their minimum wages, adding more training time for workers, and paying for tuition to keep employees from joining a union.
I think Starbucks employees are tired of running three businesses, in-store sales, drive-through and online orders. So the company promised their employees to streamline their drink complexity and test new cold beverage stations to speed up the process and make it easier for staff.
So, if Starbucks wants to keep their employees happy, they need to redesign their business model to focus on one of the three, online sales, in-store sales, or drive-through. But, first, they need to decide whether to be the third place for their customers, the fastest drive-through, or the best online sales.
Employees are tired, and they can't take it anymore.
However, if they want to be great at the above three, they need to redesign their entire kitchen to make it easier for their staff to operate.
Stay tuned; Starbucks is in trouble.
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