When CEO Brian Niccol enters a Starbucks store, he’s there for more than just coffee, egg bites, or a chocolate croissant. He engages with the company’s employees to gauge the business situation.
According to Niccol, the baristas he talks to are invested in the company’s success. In a conversation with investors at the [event not specified], Niccol said many employees he meets often ask him about the company’s stock. “When I walk into stores, they’ll ask me, ‘What do you think is happening with the stock price?'” Niccol said. “I love it because that shows they care.”
The CEO of the world’s largest coffee chain stated that this interest goes beyond financial motivation, saying that Starbucks employees, or “partners” as the company calls them, ask out of pride. “You want to be at a company you care about being part of,” Niccol said. “You want to be at a company that you think makes a difference in the community where you live.”
For years, Starbucks has aimed to boost employee engagement by instilling an “ownership mentality” in workers. Launched in 1991, Starbucks’s “[program name not specified]” program enables employees to invest in the company’s stock and share in the company’s performance outcomes. The concept is that Starbucks employees, regardless of their rank, can develop a more personal connection to the company’s success.
The Starbucks stock price has been remarkably steady over the past five years, with the $100 billion company down more than 5% during that period.
Shifting workplace priorities
Niccol joined Starbucks from [source not specified] in September 2024. As the head of the coffee chain, Niccol has tried to transform the company through various workplace initiatives, including a four-day [mandate details not specified] for corporate employees last October, requiring remote workers to relocate to either Seattle or Toronto within 12 months, affecting hundreds of workers. The move is intended to enhance employee connection to get Starbucks back to its core, according to the company.
For Starbucks stores, the company [modified dress code details not fully clear] the dress code for baristas, suggesting employees wear solid black tops and remove ear gauges larger than a quarter. The company also set a rule that required workers to write notes like “you’re amazing” and “seize the day” on customers’ cups, according to a company [source not specified].
In the past, Starbucks has differentiated itself from other chain stores by offering benefits not typical of hourly workers, such as health benefits for part-time employees and [tuition details not fully clear] via a partnership with Arizona State University. At Chipotle, Niccol [implemented] a similar tuition policy as CEO in 2019, offering free college to all employees enrolling in business or tech degrees.
However, the pressure to rebuild a positive workplace has become a major concern for Starbucks leadership. The company has been facing an ongoing strike from its workers’ union, Starbucks Workers United since last November. The “[strike name not specified]” as the union calls it, has continued to today as Starbucks and union leaders have failed to negotiate a labor contract that meets the union’s demands for better staffing and higher pay. The strike has involved less than 1% of its coffee houses, and it persists at fewer than 20 locations, according to the company.
Niccol said in the investor day meeting that he aims to foster career success and a sense of workplace satisfaction among his employees. “We’re going to give you a great professional career, and we’ll also provide terrific personal opportunities,” Niccol said. “It’s a place you can be really proud to tell your friends and family that you work at Starbucks.”
The CEO’s remarks clearly showed his vision to position Starbucks as a preferred workplace for all hourly employees. “We want to be a different kind of company. We want to be the kind of company where people can build a career.”