What's Happening?
Starbucks Corporation has announced a 2% raise for all salaried employees in North America, marking a shift from previous years where raises were awarded at managers' discretion. The decision is part of Starbucks' turnaround strategy, which includes improving service, reducing wait times, and enhancing store environments. The company is also focusing on cost management to support these initiatives.
Why It's Important?
The uniform raise reflects Starbucks' efforts to streamline operations and manage expenses amid its turnaround plan. The company aims to reverse declining same-store sales and improve customer experience. The raise is part of broader workforce changes, including tighter dress codes and layoffs, as Starbucks seeks to enhance its competitive position in the retail sector.
