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Baristas demand better pay, more staff, ban on rude

customers

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Starbucks ( SBUX ) may add staff, curb coffee deals, analyst says

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CEO Niccol to say more on strategy on Oct. 30

(Changes date; updates to add share move, details on baristas,

background and analyst comments in paragraphs 3, 9-13, 17-20)

By Waylon Cunningham

Oct 23 (Reuters) - Starbucks' ( SBUX ) new CEO Brian Niccol has

his work cut out for him.

Tasked with reassuring investors that the company's coffee

shops are still hugely popular in the U.S., Niccol also has to

contend with baristas and hardcore Starbucks ( SBUX ) customers who say

they want plenty of changes.

Baristas complain about what they say are chronic

understaffing and poor pay and benefits, among other problems.

Starbucks ( SBUX ) on Tuesday pulled its earnings guidance for the

coming fiscal year and reported a 6% fall in fourth-quarter

same-store sales in the U.S.. Niccol said baristas need to be

supported to provide "exceptional service" to customers.

"To succeed, we need to address staffing in our stores,

remove bottlenecks, and simplify things for our baristas," he

said in a video statement.

Shares of the company were marginally lower on Wednesday.

Niccol also said he wanted to simplify the menu, fix

pricing, and refine mobile order and pay so as not to overwhelm

baristas.

A handful of baristas Reuters spoke to in New York said they

want Niccol to take steps to prevent chronic understaffing. Liv

Ryan, a barista and union organizer at a Starbucks ( SBUX ) in Long

Island, New York, said that Niccol should put "an end to short

staffing."

One barista, who did not want to be named for fear of

reprisal, said he wanted to see more clear divisions between

stores that focus on mobile orders and drive-throughs, and those

that hew closer to the original vision of Starbucks ( SBUX ) as a

laid-back coffeehouse.

Such a separation could ensure a smoother workflow, he said.

Niccol said in an open letter last month that part of his

strategy will be to make a clear distinction between "to-go" and

"for-here" service. The CEO, former head of Chipotle Mexican

Grill ( CMG ), has built a reputation for listening to his

detractors and fixing their complaints.

RUDE CUSTOMERS

"We suspect multiple avenues of attack (by Niccol) are

likely, including increasing labor hours at stores and reducing

the frequency of limited-time promotions," said William Blair

analyst Sharon Zackfia.

Some baristas told Reuters they hope Niccol not only

accomplishes his stated goals - including abandoning some of the

promotions that caused surges of customer traffic and order

backups at cafes - but that they also want him to provide

clearer guidelines to cafe managers for banning customers who

act inappropriately.

Liv Ryan said baristas have long had gripes about the lack

of guidance from Starbucks ( SBUX ) on how to contend with bad-tempered

customers.

"I have been told countless times that part of our job is

'just taking rude customers,'" Ryan said. "But there's no clear

line between 'rude' and 'hostile' and even then I shouldn't have

to put up with anyone being rude to me at my job."

As for baristas who are part of, or who aim to be part of,

the new Starbucks Workers United union, they want Starbucks ( SBUX )

complete the contract bargaining process with workers. "All I'm

looking for is a collective bargaining agreement by the end of

the year," said Parker Davis, a union organizer at a Starbucks ( SBUX )

in San Antonio.

Niccol said last month he wanted to empower baristas to take

care of Starbucks ( SBUX ) customers.

"We'll make sure our baristas have the tools and time to

craft great drinks every time, delivered personally to each

customer. For our partners, we'll build on our tradition of

leadership in retail by making Starbucks ( SBUX ) the best place to work,

with career opportunities and a clear path to growth," he said.

On Wednesday, Niccol said he would share more details about

possible changes on the company's earnings call on Oct. 30.

"We found (Niccol's focus) encouraging, given how quickly it

is coming together," Piper Sandler analyst Brian Mullan said.

"While executing it will be difficult and will take time, we

think the important takeaway here is that Starbucks ( SBUX ) is no longer

rudderless."