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Starbucks Barista Champion
Starbucks crowns Global Barista Champion Nobuki, representing Japan (Starbucks)
BUCK THE TREND

Starbucks goes all in on human baristas after years of slashing the size of its workforce

The coffee giant crowned its first global barista champion on Wednesday, as it pivots away from automation with the rollout of a staff-focused service model.

Millie Giles

What makes a good barista? Extensive coffee knowledge? Intricate latte art? Spelling your name correctly?

According to Starbucks’ first ever global barista champion, Japan’s Nobuki — who beat 84,000 other contenders as he was crowned at the company’s Leadership Experience event in Las Vegas on Wednesday — the first step is a “sparkling smile.”

CEO Brian Niccol would agree. His plight to turn around the flagging company by hiring more in-store employees is centered on a bet that Starbucks is missing a human touch. The ex-Chipotle chief told the Financial Times, “We over-rotated on the idea of equipment and that replacing the humanity of service, and I think service is our point of difference.”

Ex (coffee) machina

Since taking the helm in September, Niccol has been heading a customer-service-focused “Back to Starbucks” strategy to return the world’s largest coffee chain to its coffeehouse roots

On Tuesday, he told Reuters that Starbucks is accelerating the rollout of its new “Green Apron” service model to all North American stores by the end of summer — announcing to the ~14,000 store managers at the Vegas event that “the biggest human capital investment in connection in the history of Starbucks is about to happen.” For many Starbucks workers, this can’t come soon enough.

2025-06-13-starbucks-employees
Sherwood News

Since 2022, the company has slashed its workforce, moving toward automated equipment for efficiency. Based on our calculations, the company had an average of 26.8 employees per US company-operated Starbucks store at the time. By the end of fiscal year 2024, that figure was 19.8.

But now, Starbucks is doing a U-turn on automation, having halted the use of its high-tech systems in April. Though analysts have raised concerns about the cost of the in-person push, baristas at high-footfall branches will be buzzed: a Bloomberg survey last year found that only one-third of US Starbucks workers said stores were consistently well staffed.

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Netflix is down amid reports it’s leading the Warner Bros. bidding war as Paramount cries foul

Netflix’s charm offensive appears to be working.

Netflix is reportedly emerging as the leader in the bidding war for Warner Bros. Discovery after second-round bids this week, edging out entertainment juggernaut rivals Comcast and Paramount Skydance.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

business

Delta says the government shutdown will cost it $200 million in Q4

The 43-day government shutdown that ended last month will result in a $200 million ding for Delta Air Lines, the airline said in a filing on Wednesday.

That’s about $100,000 per shutdown-related canceled flight. (Delta previously said it canceled more than 2,000 flights due to FAA flight reductions.) When the company reports its fourth-quarter earnings, the shutdown will lop off about $0.25 per share.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

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