^{Photo: Forbes India}

Starbucks Prioritizes Its People in Renewed Push for Corporate Comeback

After a challenging period of declining customer traffic, labor disputes, and internal culture drift, Starbucks is zeroing in on its employees as the centerpiece of a broader corporate revival. At the heart of this effort is CEO Brian Niccol’s “Back to Starbucks” initiative, unveiled in full force this week at the company’s largest leadership gathering in years.

Over 14,000 store managers gathered in Las Vegas for a three-day Leadership Experience, where the company rolled out sweeping initiatives aimed at empowering store leaders, restoring workplace culture, and winning back the loyalty of both partners (employees) and customers.

Restoring Starbucks' Soul: Culture, Comfort, and Career Growth

Niccol’s message was clear: Starbucks’ culture had drifted, and rebuilding it begins at the store level.

“We are a business of connection and humanity,” Niccol told the crowd. “Great people make great things happen.”

The “Back to Starbucks” theme permeated the event — from the wifi password (“backtostarbucks!”) to a new heritage coffee blend named 1971 Roast, commemorating the brand’s Seattle origins. This nostalgic lens was more than symbolic; it signals Starbucks' intent to recapture the essence of its community-first ethos.

Niccol acknowledged that Starbucks had, in recent years, removed over 30,000 café seats, undermining its long-standing identity as a "third place" between home and work. This decision had frustrated both customers and baristas. In a move that drew loud applause, Niccol announced those seats are coming back — part of a larger plan to make stores more inviting and comfortable again.

Empowering Managers and Investing in Internal Talent

One of the event’s biggest announcements came from Chief Partner Officer Sara Kelly, who received a standing ovation when she revealed that most North American Starbucks locations will receive a full-time assistant store manager by next year. The addition aims to ease pressure on store managers and improve store operations.

In another major shift, Starbucks plans to dramatically increase its internal promotions. While 60% of store managers are currently promoted from within, the company aims to boost that number to 90% across its expanding network.

With 10,000 new locations planned in the U.S. over the next several years, this will open up approximately:

• 1,000 new district manager roles
• 100 regional director positions
• 14 regional vice president slots

This internal mobility effort is designed not only to boost morale but also to create long-term career pathways for existing staff.

Reworking Labor Models and Listening to Baristas

Labor challenges have long haunted Starbucks, especially amid growing unionization efforts across hundreds of U.S. stores. Complaints around understaffing, inflexible scheduling, and overwhelming workloads have persisted.

Niccol’s response is a reimagined Green Apron labor model, set to roll out by the end of this summer. The model has shown in pilot tests that it:

• Improves service speed
• Boosts customer traffic
• Increases manager input on staffing levels

Managers will now play a bigger role in determining how many baristas are needed at their individual locations, reducing the cookie-cutter staffing approach that has contributed to burnout.

Before launching new products — such as a protein-infused cold foam beverage — Starbucks will now test in select stores first, allowing barista feedback to shape the national rollout.

Financial and Market Response

Since Niccol was appointed in September, Starbucks stock has risen nearly 20%, nearly regaining the peak it hit during the 25% spike following the CEO transition. The company's early 2025 layoff of 1,100 corporate employees was framed as a cost-cutting measure to reduce bureaucracy and streamline operations.

Niccol has also targeted marketing overhaul, fixes to the mobile app, and revamping the in-store experience as pillars of his turnaround strategy. These structural changes are aimed at both retaining Starbucks' loyal base and reigniting growth.

Endorsements from Starbucks Legends

Despite being the current CEO, Niccol wasn’t the only one to capture the audience’s energy. Two figures from Starbucks’ past — former board chair Mellody Hobson and founder and former CEO Howard Schultz — received emotional standing ovations from store leaders.

Hobson, who stepped down earlier this year after nearly two decades with the company, praised Starbucks partners for their impact on her personal and professional life. Schultz, who built the company into a global powerhouse, made a surprise appearance on the final day.

“Be true to the coffee, be true to your partners,” Schultz urged, backing Niccol’s mission with enthusiastic support. “I know we’re going to come out of here like a tidal wave and surprise and delight the world — just like we did in 1987.”

What’s Next for Starbucks?

With a massive store expansion on the horizon and renewed focus on people-first culture, Starbucks is betting that employee satisfaction is the key to long-term success. Analysts say this cultural investment may also serve as a critical defense against further unionization.

Niccol appears to be setting a new precedent — one where Starbucks competes not only on coffee quality but on how it treats the people who make it all possible.

If the energy at this week’s Leadership Experience is any indication, that bet might just pay off.