Starbucks plans to spend more on baristas while putting the expansion of a three-year-old café technology system on ice, as it emphasises labour over gadgets as a way to bring customers back to stores.
The US-based coffeehouse chain on Tuesday reported a 2 per cent year-on-year increase in quarterly revenue to $8.8bn — in line with expectations — but a 50 per cent slide in net income to $384.2mn. Analysts polled by Visible Alpha had predicted quarterly profits of $551mn.
Under chief executive Brian Niccol, who took charge in September, Starbucks has sought to reverse a sales slump that has now persisted for more than a year.
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