Starbucks seeks to reduce the $ millions store update costs

Starbucks Corp wants to reduce how much you spend updating stores, which could help face investors’ anxiety for the price of the chain tour.

Starbucks had spent 800,000 to 1 million dollars for each shop remodeling, CEO Brian Niccol told the staff at a meeting in the entire company, according to a record seen by Bloomberg News. The coffee chain is looking for ways to reduce the costs for these renewals, which can lead to significant changes such as electrical or plumbing updates.

Separately, the company presented a new strategy to update stores for $ 150,000 each or less, said Niccol. A “coffee climb” may include less drastic changes for good -shaped stores, such as new furniture and fresh paint.

“We started building really expensive shops that didn’t look very good, so it couldn’t have been worse,” said Niccol. “The seats are shit and it is very expensive.”

“It is impossible to have a financial sense,” he added.

Starbucks confirmed that the reduction of costs related to renewals does not change the ongoing plans to add more points of sale, more comfortable chairs or other details designed to make the shops moreinviting– A key part of the Niccol Change Plan.

Also directs projects to Speed ​​up the service With more staff and technology, including an algorithm to prioritize what orders to be prepared first, a movement that he has said is already reducing waiting times in test places.

The company recorded the fifth consecutive quarterly decrease in sales comparable on April 29. ACCIÓ’s profit was successful due to the expenses associated with the change, and the company pointed out the profitability will remain under pressure as the coffee chain invest in stores and operations. These warnings contributed to the investment Jitters, with the shares that fell 5.7% Wednesday. The action increased approximately 1% on Thursday at 9:37 AM in New York.

Wednesday’s Moody ratings changed their perspectives on Starbucks to stable negatives, reflecting “weakening profitability and credit metrics” in part due to “increased labor investments made as part of their” start -up “reinvention plan.

Starbucks is trying to build a “better business” in part managing the costs, Niccol told analysts early this week during the company’s results call. At the Wednesday meeting, which is held at the headquarters after each results report, Niccol urged workers from all over the company to look at spending in their own divisions.

“We have to ask ourselves how, it helps us to offer the strategy and tactics of” Back to Starbucks? “He said, referring to his change plan for the company.” Because if he is not, he would encourage you to say how “HMM, I’m not sure we need to spend the money this way.”

Niccol, who joined in September, seeks to reverse a sales fall driven by the increase in prices and long waiting time for orders. The boycotts after the outbreak of the war in the Middle East also contributed to the slowdown.

Although the decrease in sales persisted in the last quarter, some signs of progress have appeared. The traffic between non -rewards members has been stabilized, said Capdom, Cathy Smith, and the company’s market share.

This story originally presented to Fortune.com

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