🤔You are Starbuck’s newest CEO. Beyond the unions, you have walked into a difficult situation. The most popular beverages sold these days (iced drinks with flavored syrups) are significantly different from the company’s coffee roots, you have a weak business in Europe that hasn’t performed in over 10 years, and a promising business in China who is still opening slowly. On top of all this, you have a workforce of baristas demanding greater operational simplification and automation, which would potentially hurt store experience and drink quality. The other conundrum is that the licensing model, which has fueled Starbuck’s expansion over the past two decades, seems to be at its limit. Licensing has been successful in protecting the Starbucks brand and ensuring a consistent store experience around the world - but that control has come at a cost. The revenue / profits from licensed stores that flow to Starbucks the company are peanuts compared to companies who follow the conventional franchise model. For example, Dunkin’ Donuts enjoys 30-40% operating margins using franchises despite not having anywhere close to the global scale and popularity of Starbucks. Investors are pressuring you to present a vision like your legendary predecessor Howard Schultz. As the new CEO, what would your growth story be for Starbucks?
@RushingRussianify Жыл бұрын
As the new CEO of starbucks I am taking the company to double digit growth through deep investment into AI
@davidstruck8109 Жыл бұрын
This is gonna sound nuts, but I'd take a real hard look at developing some locations into a 3rd space WeWork style office space rental. Think about it: Starbucks already has free wifi, and it's a cliche that writers and other professionals camp out at Starbucks all day, why not monetize that? Charge $120 for someone to work in a Starbucks themed office environment for 10 hours, or $40 to rent a meeting room? It could work.
@je4a301 Жыл бұрын
@@davidstruck8109 what would be the added benefit worth 120$ a day of working in a Starbucks themed office environment compared to a normal café? Offering private rooms for meetings might make sense though
@summertime69 Жыл бұрын
Labor concerns have to be first. Front line staff are what make the brand and if you care about customer experience, thats where the priority has to be. It shouldn't be terribly hard or expensive to do consistent work hours. By opening up union bargaining, you can tell employees and the public that you're listening. Many of the folks who don't go to Starbucks but go to other coffee shops do so on these kinds of principles, and workers rights is the next wave of our society ecominc climate.
@notsheeple-ih6hl Жыл бұрын
First would be to shut down the worse performers in Europe and stick to having locations only in big cities/tourist locations. Second would be to change the franchising model towards a more KFC style model with lesser corporate control but more consistent returns. Finally, for PR purposes I would run an ad campaign showing how giving in to the union demands would affect store performance.
@MrMurica Жыл бұрын
If Starbucks is already selling waaaaay overpriced drinks, and has to crush unions just to survive, Starbucks shouldn't succeed as a business
@annerison Жыл бұрын
Exactly
@Kiwiiizzz Жыл бұрын
The teenage market who uses their parents money is the reason they're still open
@DavidJones-pv8zz Жыл бұрын
yet you buy overpriced iphones, over priced designer clothes made in asia...this is business these days...this is capitalism
@jorgeavelar98 Жыл бұрын
Starbucks is already paying its employees far more than the average retail store. It makes sense for them to want to crush unions since what theyre asking for is pretty absurd considering the entire market as a whole
@drzerogi Жыл бұрын
Dumb take by dumb people. Companies should not be told by 3rd parties (unions) how to run their business.
@robertstuckey6407 Жыл бұрын
Im skeptical about the claim that everyone joylessly sucked down bad coffee before starbucks came in. The cafe/diner as a meeting place has a long history. What Starbucks did was premiumizatuon.
@weazelzinacan8866 Жыл бұрын
Also the fact that you have long established coffee cultures with cafés all over Europe for example...
@fallout5608 ай бұрын
lets be real here. diner coffee wasnt good
@Amphibax8 ай бұрын
Depends your talking about some diner coffee or some nice local café? Starbucks made good coffe available for everyone
@Amphibax8 ай бұрын
As meeting place they where mostly for the upper class
@exu73258 ай бұрын
Starbucks' coffee isn't even good.
@kibaanazuka332 Жыл бұрын
Something that isnt mentioned about Europe but noteworthy is that Starbucks entered a market where local coffee chains have a good stronghold and independent coffeehouses are abundant. Europeans also take their local coffee culture seriously whether its Fika in Sweden, Vienna coffee, or the Coffee Bar culture in Italy. That is something hard to penetrate and take over in trying to change local coffee habits. Along with Starbucks is just expensive, like 2-3x more expensive than local coffeehouses from what some European friends have told me. They've basically backed themselves into a corner and seems to only being staying afloat off locations in tourist areas where they get traffic.
@ceccoangiolieri3430 Жыл бұрын
Thinking that Starbucks was created after a trip in Italy and was inspired by italian coffee bar makes me bewildered
@jr8260 Жыл бұрын
Yeah cafes are pretty great in Europe. When I visited Rome I was able to get espresso and a Nutella stuffed croissant for like 2,50 eur which was about 2.70 usd at the time. Not only was it cheaper than any option in the US, it was wayyyy better and tipping isn't even expected lol.
@elfulano5884 Жыл бұрын
They tried to enter the Austrian market. Not surprisingly, they didn't last very long.
@yjlom Жыл бұрын
starbucks make good milkshakes, but their so-called "coffee" on the other hand
@coasterblocks3420 Жыл бұрын
@@elfulano5884 they tried to enter the Australian market - they went bankrupt.
@MarcDoughty Жыл бұрын
As someone who grew up watching Starbucks come in and crush local coffee shops with their overpriced swill and brutal corporate tactics, this video had me cry-laughing.
@jadenpark7943 Жыл бұрын
now it seems small local coffee shops are thriving
@steveng3899 Жыл бұрын
As a person who grew up drinking Robusta Singapore coffee , along with certain beans in Africa which definitely isn't just simply cheap arabica coffee, i agree that starbuck coffee is a joke.
@Nebula37 Жыл бұрын
@@steveng3899 You don't have to like Starbucks, but that's just nonsense. Starbucks began by selling coffee beans. Their coffee quality is excellent and they sell a very wide variety of coffee beans from all over the world. If you knew anything about Starbucks you would know this already.
@anderander5662 Жыл бұрын
@@Nebula37 How to say you've got black fingernails...without saying you got black fingernails.
@zippymufo9765 Жыл бұрын
@@jadenpark7943 Not really. Only in certain urban areas. Starbucks still dominates most of the country.
@pierrex3226 Жыл бұрын
Surprising to me that Starbucks still paints itself as growing, innovative or edgy, or anything other than commoditized F&B. And health wise, how long until the soda tax spills into these Starbucks "drinks" that have more calories than you can count?
@burnt-croissants Жыл бұрын
Former stabucks barista, one grande frappacino has around 300-450 calories depending on the flavour. It’s more than a can of soda.
@enticingmay435 Жыл бұрын
I don’t think that their lobbyists would ever let that happen. Especially when our politicians worship these big companies who give them money. People will continue to gulp down their overpriced mix of different sugars and then turn around and complain about being broke and having health problems.
@kenobi8257 Жыл бұрын
@@burnt-croissants Okay what about coffee. Starbucks is a Coffee company.
@ling636 Жыл бұрын
@@kenobi8257 Not anymore. The cold drinks section is growing. Anecdote, but most people I know that regularly go to Starbucks are getting cold drinks and maybe a snack.
@kenobi8257 Жыл бұрын
@@ling636 but that’s “people I know”. Statically people get coffee at Starbucks.
@thetrainhopper8992 Жыл бұрын
I’m in a union and worked in retail, there are reasons for wanting a union other than pay. Stable schedules are one. Your manager having the power to change you schedule at a moments notice is BS. You can’t plan on things from week to week when you don’t have the same schedule. Or if there is a labor or safety violation, unions are better able to handle that than reporting a violation to an underfunded state agency. Unions have their own problems, but you can go the extra mile of the Starbucks Union and be independent. You don’t need to be in the AFL, SEIU or NEA in my case. You can be independent and do what you want. Which is serve members.
@mantolinez Жыл бұрын
There should be a federal law. In most developed countries workers are protected by GOVERNMENT. No corporation or company can change rules. Imagine, 3 years of PAID maternity leave, 28+ days of paid vacation, healthcare - you can miss your job for weeks and still get money, no changes in your schedule, no extra fees, no one can fire you without a 2 month notice! That is how it shoud be everywhere.
@NotaPizzaGRL Жыл бұрын
@@mantolinez Those laws all exist due to workers organizing in unions and fighting for them. Those are concessions that were won as a result of said fights. The government ultimately services the class that controls the means of production so relying on said government for your rights as a worker is not a good idea. The minute the rulers decide that you're asking for too much or you're too disobedient they'll bring out the truncheon to put you back in your place.
@sillybilly4710 Жыл бұрын
@@pointvector1951 BRO SAID EUROPE IS ON THE BRINK OF COLLAPSE BECAUSE THEY PROTECT WORKERS LMFAO get shit on lil bro
@bodyloverz30 Жыл бұрын
@@pointvector1951 Starbucks is not a startup!
@thetrainhopper8992 Жыл бұрын
@@danh9083 not needing and no trade offs are not the same thing. With teachers unions there are plenty of reasons not to be in the NEA if your bargaining unit has its business together and it’s relatively large. I personally wouldn’t vote to disaffiliate with the NEA, not because I like them, but because my bargaining unit has a long history if incompetence. Like me not getting the ballot to vote on the current contract.
@czechmeoutbabe1997 Жыл бұрын
The strongest arguments for Starbucks being *exceptional* were always just basic human things: A shared 3rd space for people to chat or work in, Baristas that cared about the customer experience, quality coffee, free Wifi, decent interior design, etc. None of these things requires the company domination on top of it. You could get all of this from a good coffee shop in a Bookstore or Library. I wish the Unions luck in their struggle :)
@BlitzkriegOmega Жыл бұрын
Didn't Starbucks get rid of pretty much all of these things over the years though? Most of the Starbucks that are open these days are drive-through only, and the ones that are or were places you could actually step inside are so focused on pushing you out as soon as you make your purchase in order to get to the next customer. It just sounds like another race to the bottom to chase after short term profit at the cost of long-term sustainability
@itsmatt2105 Жыл бұрын
Struggle? How? Slinging coffee is almost a zero skill required job. Anyone with a pulse can do it. The "baristas" sticking their chests out and flirting with customers, giving them a couple seconds of smile and direct eye contact in solicitude of a tip is literally the opposite of skilled labor. In short, these low skill people are lucky to have any job period, they are "struggling" against nothing and don't deserve higher pay. They are already being paid way more then their skill level and productivity warrants. I hope Starbucks follows the Burger King model and replaces them with kiosks and robots.
@seanhogan6533 Жыл бұрын
@@itsmatt2105 Are you a real person?
@samv7212 Жыл бұрын
@@itsmatt2105 You would make an exellent ceo, are you in buisness school?
@samv7212 Жыл бұрын
When he said that starbucks stores are the one of the only reliable places you can get free wifi it really made me think about how sad our society is. Like why can we not have more public places like libriaries, subway stations, parks, or literally any place where you can just spend time and not have to be buying anything to get access to basic services like wifi everyone depends on.
@SumRndmPenguin Жыл бұрын
I think it's more of a "chasing infinite growth" problem then survival problem. They clearly can make money while obliging to union demands, so it's not like they'll die if they do. The problem is that they won't make more money year over year, and I guess that's all that matters.
@jackbucher20497 ай бұрын
Well you're right in that they wouldn't die immediately, but the current economic landscape is so psychotically competitive by design that if a company did decide to stop pursuing growth as a development model, they would immediately be cannibalized and swamped by their competition.
@UseMousse Жыл бұрын
One might argue that if Starbucks isn't able to provide adequate pay and working conditions, which is then leading to workers looking to unionise, Starbucks business model is flawed and they shouldn't survive, especially if the only way they can is by exploiting workers.
@hueyg206 Жыл бұрын
But that would require considering people who aren’t rich as people, and that just doesn’t work for a certain type of person online
@HelloWorld-cq1sq Жыл бұрын
I was a bit disappointed that this 30min video basically says "if Starbucks paid workers more, then they would generate less profits than shareholders would like." Well, uh, yeah. "Think of the poor shareholders" is what I assumed the reason was before I spent 30min watching this video. I agree with you: if they don't need to union-bust to survive, they're greedy. If they do, they don't deserve to exist. Our economic system is broken.
@sydssolanumsamsys Жыл бұрын
starbucks' business model isnt flawed it does exactly what it and every other business is always designed to do private property is theft, after all
@WideMouth Жыл бұрын
Unions shouldn’t exist. “I want adequate working conditions” is just code for “I couldn’t hack it.” As long as nothing illegal is going on, you either have to deal with the conditions or quit. Life isn’t fair - just be thankful you aren’t making mud bricks in blistering heat for a dollar a week (which is something some people have been willing to do without complaints).
@officialtotino Жыл бұрын
most starbucks pay over minimum wage plus tips and theyre inside making coffee... baristas are just entitled and think they're skilled laborers
@TheDirtestHippy Жыл бұрын
I work in a Starbucks in Hawaii. I get $16.25 before taxes. I'd say the average price of a drink we sell over here is about $6-7 and food included its often about $10-15ish per person. We often clear around 10-13kish in revenue every day and this is considered low compared to what we were doing per-COVID. One apsect of unions negotiations which I feel were not adequately brought up were guaranteed hours. Living in Hawaii the cost of living is quite exorbitant. Despite me pestering my boss for more hours constantly, I'm averaging about 30 to 25 hours a week. Nobody on my store's schedule is full time except my manager and the average amount of hours between the 20ish partners at my store are about 20-24 hours a week. For a store that's consistently bringing in about 13k a day you'd figure we'd be able to afford more hours for our partners, but corporate continues to cut hours and our manager is constantly understaffing because as she descibes it "we are not earning enough to justify our hours". Higher wages would be nice but at this point I'd be happy with just being guaranteed enough hours to pay my rent and buy groceries. Overall working for Starbucks isn't bad but I can never see myself making a career out of this and I pray for anyone who attempts to do so.
@Hanszo1995 Жыл бұрын
It almost not related but I can understand they point about not earn enough to justify the work hours. In my company, depend on department we was giving different hours to complete the job. If it too busy, it can go over 600 but if not it going down to 400. So either we have to improve to work different kind of task to earn our full hours or the company have to hire extra people and we have to split the default hours that set for each paycheck. And they limit how many full time worker in one department except leader role so it up to our leader to determine the schedule to be fair for everyone. Some time the leader have to give up couple hours to fill the gap so we can't be in situation under 30 hours shift.
@darktooth347 Жыл бұрын
You live in Hawaii and survive by working at Starbucks. Ain't no way
@mathematics117 Жыл бұрын
Guaranteed work hours is something that is so important. I know people who have been disqualified from benefits because their hours didn't meet the minimum, they begged for more hours and they weren't given any.
@afoxinaviators4105 Жыл бұрын
The bottom line of this is the benefits of being a full-time employee... It's complicated and I won't get into it here, but as soon as a business claims an employee as 'full-time' there are a myriad of other things which come into play, especially needing to provide the employee with healthcare. While the employee themselves might not see why they can't get more hours, the company looks at the cost of everything else, which is why it is cheaper to higher 5 'part time' employees than 2 'full-time' employees. On a similar note, that is why they fight so hard not to give raises. I forget the exact figure but for every dollar an employer adds to an employee's paycheck, it's something like 2.50 the business itself ends up paying, due to having to pay the employee's myriad taxes (Social Security and Medicare for instance). And the more the employee makes, the more those taxes go up.
@mathematics117 Жыл бұрын
it's definitely a money game. It sucks cause at least with most of the people I know who work retail they get hired on as full time, or with the expectations of full time, but over time they loose hours and are forcibly part time. Stores suck people in with full time, benefits, etc. But then screw over the employee :/
@twerkingfish4029 Жыл бұрын
I never understood the immense draw of Starbucks, and places like it, because drinking a coffee milkshake every day seems to unhealthy to ever justify, and if I want black coffee, I’ll make it at home for 20 cents a cup rather than have it at Starbucks for $4 a cup. I just get my slave produced coffee the boring way.
@etienne2315 Жыл бұрын
They basically backwards engineered milkshakes.
@Danji_Coppersmoke Жыл бұрын
You mean "myself" not "my slave". right?? lol
@dannydaw59 Жыл бұрын
Making it at home saves time too.
@chibi_bb9642 Жыл бұрын
@@Danji_Coppersmoke i think twerkingfish was talking about the people who make the coffee, who are often woefully underpaid, if at all. thats why you sometimes see coffee in stores branded as ethical or whatever
@SahnigReingeloetet Жыл бұрын
Yeah, you can either get an awful overpriced coffee at Starbucks (have you tasted their roasts that are anything above medium, basically oily ash), or you can make your coffee at home with a better bean (organic, fair trade, single source, roasted by a local roaster) and better technique (provided you put the bare minimum in). As with most things, diy is cheaper and better.
@bisiilki Жыл бұрын
As an Australian I am proud that we hate Starbucks
@Kieran6spdm Жыл бұрын
I love that all other countries people act like they speak for the country, maybe they do, and that makes it even worse.
@realpart Жыл бұрын
@@Kieran6spdm Most Australians do not like Starbucks, hence why it failed miserably in Australia.
@randomyoutubebrowser5217 Жыл бұрын
@@Kieran6spdm I would normally agree with you. But in this case, its very evident. I don't even like coffee but Australian coffee business is extremely competitive, and its drinkers are very picky. But once a coffee shop has made its reputation in a particular crowd/location/community, its customers are extremely loyal. The starbucks model would never work in Australia. Its not just the brewing at the coffee shop. The entire supply chain affects how the coffee tastes. From the beans, to the roaster and even what milk and where it comes from. My wife was a barista during her student days and she cannot find any thing that tastes as good as Australian coffee in Europe. Maybe they have good coffee too or different tastes but another reason why the starbucks model would not work.
@coasterblocks3420 Жыл бұрын
@@Kieran6spdm Australians sent StarBucks into receivership because we refused to drink their terrible coffee offerings. We a long established quality, almost exclusively independent, coffee culture.
@Will-wv9ct Жыл бұрын
Proud of you too
@ericp0012 Жыл бұрын
The best thing people can do is to buy from (small) local coffee shops and make coffee from home.
@InvestmentJoy Жыл бұрын
A point of concern is that on average local stores pay their employees on average 35% less than the chain locations do.
@jorgeavelar98 Жыл бұрын
how is it any different? At the end of the day, local coffee shops are just businesses, like Starbucks, that statistically speaking are paying employees far less and less benefits today. Do you really want to support that?
@jessip8654 Жыл бұрын
@Investment Joy nonsense. How can locals pay worse than minimum wage?
@calmexit6483 Жыл бұрын
@@jessip8654 They usually do. Mom and Pop shops/local businesses can be even more cutthroat.
@Muffinbottomz Жыл бұрын
@@calmexit6483 in what state? At least in California, from what i can find on government sites, there are only a handful of groups who can even be considered for sub-minimum wage, the two biggest being full time students and people with disabilities. Otherwise i don’t see how any location can pay below a minimum wage legally?
@kingofthegrill Жыл бұрын
By the way, you know it's a grift when they start talking about all these vague, massive, indefinable causes. "There are millions of children in Africa who can't even afford basic medicine or a visit to the doctor... and Starbucks is going to vaguely try to make that better, somehow, we promise." Not "we need to help our local community", not "we need to focus on small-scale issues we can tackle", not "let's help some of our displaced and homeless veterans who were abandoned by the VA and their families", no no, it's "Africa", it's the "starving children in Africa". The person who wrote that probably couldn't name a single country in Africa but it's fine, it's totally not a grift guys, they're gonna do it. That's why African kids aren't starving anymore, Starbucks sent them sugary drinks and cheap pastries and now they're all full and healthy. Oh wait, shit...
@maybutworse4409 Жыл бұрын
You always do your benevolent posturing in the countries where you have the least locations because it's harder to prove that they're lying then
@kylas1902 Жыл бұрын
Well said. Any Corporation doing ANY charity is for tax breaks or publicity. You can't even pay your workers a living wage? How you helping the starving kids in America. Or heck someplace would like clean drinking water.
@Wifgargfhaurh Жыл бұрын
Africa is and almost always has been an excuse to make money.
@gildedpeahen876 Жыл бұрын
Exactly. Like “stopping hate” or “defending freedom and democracy”. There’s absolutely no way to pin someone down on a nebulous promise like that. Whereas these union organizers are making specific demands. Concrete things. My bullish detectors go up when that type of vague moralist rhetoric starts getting thrown around.
@kingofthegrill Жыл бұрын
@@gildedpeahen876 Bingo. One side has platitudes and the other has the figures and numbers laid out.
@gvozdenkuronja7414 Жыл бұрын
So they can't pay their workers their worth because they're spending that money on corporate social responsibility?!
@pudanielson1 Жыл бұрын
This video is straight corporate shill.
@ronsirman6867 Жыл бұрын
How much is a dude that can make coffee worth? Nothing no skill at all minimum wage
@Cibershadow2 Жыл бұрын
@@ronsirman6867starbucks: "We have the highest quality baristas and coffee makers, centuries of tradition in every cup" Also starbucks "These workers are worth less than tossed gum on the pavement, a dog can do their job just as well, don't deserve enough pay to live comfortably"
@Cibershadow2 Жыл бұрын
@@ronsirman6867Most unions started in factories where skilled labour was not required. And it's thanks to them that we have weekends.
@ronsirman6867 Жыл бұрын
@Cibershadow2 it's thanks to capitalism and freedom of choice that we do what we want in USA
@joshserna9983 Жыл бұрын
Infinite growth is not possible, yet it’s treated like the norm. It’s time to unionize
@Barquevious_Jackson Жыл бұрын
Your mama's waistline infinitely grows.
@joshserna9983 Жыл бұрын
@@Barquevious_Jackson Spell check silly
@Dyotar0 Жыл бұрын
Why is it impossible?
@Defenestrationed Жыл бұрын
@@Dyotar0 I mean at the very end you are constrained by natural resources / space / population. The Earth can't hold infinite people so you can't base growth off of an increasing population / market. Likewise we're already seeing ecological devastation in the name of economic growth. The only other avenue for infinite growth is through "innovation" and the knowledge economy but if you come to this channel you're probably aware how much of a scam that all is (usually).
@shamefuldisplay9692 Жыл бұрын
@@joshserna9983 He got you there you gotta admit
@elisewilkinson2803 Жыл бұрын
I very recently quit Starbucks after being a supervisor at corporate owned stores for 4 1/2 years and a barista at a licensed store for 2 years. This video really perfectly illustrated how all they care about are ever growing profits and higher and higher margins. What people seem to forget is the human aspect of it all. Tell me, how is someone supposed to pay rent earning $15/hr with an unpredictable schedule? You get hired as "full time" and are expected to have full availability but one week you might get lucky to get 35hrs and the next 30. It might not sound like that dramatic of a difference but 5hrs of pay can be the difference between paying the phone bill or buying groceries. Many people rely on working multiple jobs and having roommates just to get by. Even getting a second job can be a difficult game to play because then you have to change your availability and risk loosing even more hours. Does $20/hr sound like a lot? Of course. But when you take into account the ever rising cost of housing it should be a no brainer that wages go up as well. As a supervisor at Starbucks, it drove me crazy seeing week after week our record breaking sales while also being told we just couldn't afford more labor. It's a function of capitalism to squeeze as much production out of workers for as little cost as possible just to chase growing margins for the people at the top while the ones actually working struggle to survive.
@donaldlyons17 Жыл бұрын
Yeah the last 5 years seem to be the worst for cost as far as I can tell. Form 2009 til 2013 housing grew more expensive but I could still live on about 15K for every 20K made so not sure how those making $15 an hour survive now.
@killdamnation Жыл бұрын
I think that's a function of business rather than a function of capitalism. And I will say not all businesses operate in the same way. I worked in restaurants in thr EU for almost a decade and most of them ran payroll based on a % of turnover so you had much better flexibility in terms of pay and hours for teams
@kk-cr4db Жыл бұрын
Also just a fun fact, Starbucks in Poland charges basically exactly the same prices as in USA, despite the wages being much lower (and also most products being much cheaper). So you're paying like 3-4 dollas equivalent, but when you compare it to wages it's like they would charge 20 dollars. And people still buy it. Its crazy. They made coffee into a luxury and unfortunately other coffee shops also charge crazy now, because Starbucks set the tone for coffee in the city being a crazy expensive item.
@kk-cr4db Жыл бұрын
Oh and guess what. They pay their workers minimum wages in Poland, obviously not the equivalent of the USA wages, which would be a nice salary for Poland's standards. Who would have thought :)
@Box-O-Soldier8 ай бұрын
@@kk-cr4dbI was to SB maybe once in my life and my first thought was exactly that - US prices, minimum wages. It's a huge reason why I was always the "weird one" who never drank coffee out - the first association I get is the ridiculous pricing, this is ridiculous. P.S.: I live in Warsaw, so the prices in coffe places are ridiculous in general :d
@niewazneniewazne18908 ай бұрын
I don't think a 20$/day wage is legal in Poland. 5.44 euro per hour after taxes times 8 = 43 euro per day. Doubt the taxes add up to 50% of the wage being gone for the minimal wage. Minimal wage(work contract): 2787 zł/month divided by 160 hours times 8. 139.2zł -> 32.22 euro/day. Not sure which work trash-contract is used by Starbucks, but I guess that would be legal with a trash-contract. Apparently Starbucks is the biggest employer on the trash-contract basis. American work-camps in Poland: Starbucks, Amazon, ... All that is left is for the fucking Keloggs and Tyson to have a manufacturing plant in here😂
@highonsmog7 ай бұрын
@@niewazneniewazne1890Starbucks hires for 20 hours a week, NOT 40.
@koodigocrxzy4656 ай бұрын
@@niewazneniewazne189020 per hour not day
@carlcarlington7317 Жыл бұрын
People will simultaneously evangelize about how great our economic system is while simultaneously describing it as what can only honestly be seen as a hostage situation. “If you cut into our profits by asking for a higher standard of living we will leave you unemployed, we will stop building housing, we will stop providing healthcare” threatens a group of people completely unaccountable to anyone or thing. It can only be described as an abusive situation for the fast majority of people who do the work these people profit off of.
@b.6603 Жыл бұрын
There is no practical reason why we can't have a coop economy This is a very real hostage situation
@ericreinhold1819 Жыл бұрын
It's a hostage situation where you can leave anytime and work for someone else though.
@carlcarlington7317 Жыл бұрын
@@ericreinhold1819 this would only be true if one instantly got a ton of job offers the moment you walked out the door realistically one could (and regularly do) spend months between jobs looking for someone to hire them. Months where one can go hungry lose their home and become sick without insurance for most people the consequences for being laid off or quitting are extremely negative
@etc2913 Жыл бұрын
@@carlcarlington7317 so in my opinion that should be remediated by government programs rather than unions
@carlcarlington7317 Жыл бұрын
@@etc2913 (apologize in advance for the wall of text but this is a somewhat complex topic) I don’t really have a preference for one or the other as long as one gets there needs met and the means those needs are met are ethical the exact way said needs are met aren’t as important to me. What I would argue though is 1.people should always have a right to bargain collectively if they choose to do so and 2. that it’s undoubtable that at least currently in the us government intervention falls short of remediating these issues it’s therefore entirely reasonable for people to seek support elsewhere and entirely unethical for companies like Starbucks to deny their employees this route of remediation both as they deny employees a right to association (rights I believe should remain exclusive to individual people not corporations) and as they refuse to offer any real long term alternative. Sure they may be willing to give raises instead of unionizing but what they refuse to give employees long term is a seat at the table a way to negotiate for more in the future. That’s the real benefit to unionization imo the ability to negotiate for these things in the future outside of an unfortunately slow moving government bureaucracy.
@sam510938764 Жыл бұрын
The problem with Teavana (and DavidsTea in Canada) is that tea has a much more varied product landscape compared to coffee yet the potential for customized drinks is much smaller (until bubbletea/boba started trending in NA in the late 2010s). These vendors often act as a gateway to acquire first time tea drinkers who almost always move on towards smaller independent vendors and stop buying products from Teavana which by the nature of its business model has to source lower quality ingredients wholesale and sell for higher markup.
@Helperbot-2000 Жыл бұрын
Thays because coffe is superior
@strydersoucie1024 Жыл бұрын
There is something so beautifully hilarious about how Starbucks has to pay its employees subpar wages in order to seem like a progressive, forward thinking company that *wouldn't* pay its employe- sorry, I mean "partners" subpar wages.
@pierrex3226 Жыл бұрын
15 bucks an hour is sub par?
@strydersoucie1024 Жыл бұрын
@@pierrex3226 Given inflation over the past 3 years and the employee shortage resulting in massively increased workload, yes, absolutely it is subpar.
@USA-qm2bk Жыл бұрын
‘Subpar’ yet they have the choice to leave but don’t 😮
@tacoponcho Жыл бұрын
Many people would jump at the chance to work in an air conditioned and only have to serve coffee for 15 dollars an hour. You need a reality check.
@NotaPizzaGRL Жыл бұрын
@@USA-qm2bk Why leave when you can fight for better instead? Starbucks doesn't work without workers and not just those in the stores.
@scpatl4now Жыл бұрын
They threw socially responsible when they started to illegally bust unions. I really don't know know why there is no mention in this video of the 20 billion in stock buybacks planned over the next several years. Seems that would be relevant to this subject.
@etienne2315 Жыл бұрын
Yes or the high management payouts and bonusses, i would also have loved some quotes or insights from workers.
@jimbarino2 Жыл бұрын
Stock buybacks are just a way to goose stock price in the absence of real growth. Ultimately, their problem is the drop in profit margins that unionization would bring.
@santobarca5 Жыл бұрын
How are unions illegal?
@scpatl4now Жыл бұрын
@@santobarca5 They aren't. Starbucks illegally tries to bust them
@scpatl4now Жыл бұрын
@@jimbarino2 They could spend the buyback money on workers.
@lifeofrichard Жыл бұрын
You can't be a socially responsible company when you take advantage of your workers.
@franklyqueso Жыл бұрын
You can't be a socially responsible company, full stop. They are only good when they are made to be good by laws.
@kristeinsalmath1959 Жыл бұрын
Companies should not be the "good guy" to theirs workers. Don't like? Leave it. We only chnage our mind when we pass from a "worker" to a "investor" and begin to understand when We start a company to make MONEY not to be a NGO. I don't know how Unions are on USA, but here outside they're a nest for lazy corrupted leftoid.
@octagonPerfectionist Жыл бұрын
it’s impossible for a modern corporation to exist without taking advantage of their workers. it’s just how it works these days. erosion of unions and worker rights since the reagan era is what got us to this mess.
@NotKimiRaikkonen Жыл бұрын
No one's forcing them to work there. If they want better pay, they can go get jobs that are harder to do, than something a bored sixteen-year old can master, in-between making tiktoks and talking to their friends...
@octagonPerfectionist Жыл бұрын
@@NotKimiRaikkonen dunno if you understand how the modern world works, my dude. when all of the other jobs available at your skill level are equally shit and you will likely be homeless if you quit, your choices are kind of stripped away. not to mention the loss of healthcare and delay of getting new benefits when getting a new job.
@doingitwelldotbiz Жыл бұрын
I appreciate this video very much, since it can be hard for the public to get an accurate view of the company as it has changed through the years. One thing I think would have been an essential point to highlight is that, while many systems have been simplified and standardized for ease of adoption, the job of barista is incredibly complex and takes a plethora of skills to accomplish well. Starbucks wants to paint baristas as entitled children, when there is no Starbucks without the hands that assemble their (now sole) product. Complex beverages require attention to detail to create them to the highest standard. Customers will carry notes from baristas at their home store when they travel, because what they want is so specific that the customer cannot explain it themselves. That speaks to the ongoing relationships that require baristas to mediate their time, use communication skills to translate requests into recipes, and incorporating feedback across visits so that customer is getting exactly what they want every time, no matter who is on bar. I have seen baristas I've trained get married and have kids, or become professionals in adjacent markets. I have customers drinks that I can never, ever forget (Half caf, five shot, venti, four pump, breve, with whip, no sprinkles, cinnamon dolce latte, which I haven't made since Obama's first tenure in office.) They want to pay baristas like all they do is press buttons and mop floors, but also want to encourage customers to request 20 ounce, bone dry, coconut milk cappuccinos (preposterous.) Without baristas forging connections that go beyond coffee and cream, there's no reason to pick Starbucks because that's what has made their model so unique. There's no energy quite like that of a fully invested Starbucks partner. We dance, we sing, we draw on cups, we memorize the routines of entire households, we put the raw sugars in after the shots but before the milk, we scrub toilets, we tell jokes, we comfort grieving customers, or congratulate milestones. It's a job that becomes more than a job and it was easier to do before the company pivoted to selling caffeine laced sugar shakes. They can either make the job fit the pay, or pay their employees what they're worth. But insisting that what baristas do is nothing while it's everything they make their money from is asinine.
@dudere Жыл бұрын
Here at Starbucks we heard that money cannot buy happiness. We chose to believe that. So clearly this is a you problem. Now, continue to sell products that you can no longer afford at double happiness.
@Eastbayrob Жыл бұрын
Without labor there profit margins are zero.
@zippymufo9765 Жыл бұрын
Unskilled labor has never been valuable, and you can't assign value based on cringe "social justice" ideas.
@bigbud8182 Жыл бұрын
I was a 6 year Starbucks vet. This is 100% truth!!! The relationships are the best thing about my time at Starbucks. But ya over time working at bare boned stores was dumb af and if 1 person calls out that fucks everything up. Luckily, the county I was at had the minimum wage at like 20 or something so I was making 21 or 22 when I left and I worked Monday to Friday opening for like 37 hours a week. But not everyone was so fortunate.
@visigoth92719 ай бұрын
People now say things like "if you don't like it, leave". That's always the solution. We never expect anyone to advocate for a better, more economically reasonable experience for consumers and workers. It's about time to get back to that.
@joshuaw71111 ай бұрын
If Starbucks can’t survive as a unionized store then I guess we have progressed past the need for Starbucks.
@brendanconlon82926 ай бұрын
....So you would rather all of its employees lose their jobs?
@KaterinaDeAnnika Жыл бұрын
I would have actually put more emphasis on why Unions really stepped up as the option so many employees needed, instead of leaving us with the ‘low skilled worker’ moment from earlier. As the modifications grow and the pressures for drive times mount to 40 second and lower window times, the labor has turned from one of pressing a button on a 2010 automated coffee machine to one of a skilled, fast, highly mobile worker. They also had to go down to skeleton crews. The labor slashes are unbelievable. Under 400 hours of labor for an average store per week, often significantly lower. Try juggling 20-30 employees with that, with openings often earlier than 6am and later than 8 or 9. That’s skeleton crew hardcore. So now one barista has to do the job of 3, and the store manager has to do the job of every person they employ. Next, add in hypocritical leadership who use corporate jargon to pressure managers into making crackdowns on people to improve profit margins while infringing on their people. Slashing hours last minute without notice, going directly against federal and state guidelines. Not making repairs. Slashing all hours for clean play shifts to maintain health and safety standards in stores. Writing up employees who stay late to ensure all tasks are done since they didn’t have the people to handle rushes close to shutting their doors that night. Temperatures can regularly reach into the 90’s, with no stores able to control their own thermostats. Seattle/corporate headquarters does that. The New York stores had bee infestations that were reported to multiple high levels of management but it wasn’t a priority and they kept endangering customers and workers, and choosing to save money on repairs and orkin visits just to increase the P&L in the store. They regularly slash hours as well to remove tenured workers, thereby removing the largest partakers in their more expensive benefits programs, and getting rid of the workers who attained the highest wages due to multi year raises even as low as 11 cents a year. It’s crazy. That was my raise one year as a shift manager. 11 cents. I was outraged. Tenured workers are also the ones most likely to want to unionize because they remember when they were treated with dignity instead of disposable chattel to toss shit in a cup in 45 seconds or termination. Then they slash the hours of the part timers so that they make less than the required 20 hours to receive benefits at all. And then they encourage managers to fire those not meeting 12 hours a week. But when you cut a store with 30 employees post crackdown to 380 or less hours, you now have to choose between the part timers who can more easily find another job, or the full timers who have rent to pay and kids to feed. It’s super super difficult, and starbucks acts like they have the moral high ground still, and provide a family environment. Unless you get a store manager that fights against this at the risk of their job, their head on the chopping block the second they have a single underperforming week, you’re getting shit on, laws broken concerning your wages and your schedule, and constantly in fear of easy replacement at the drop of a hat. Seen from the inside, it’s way worse than this video shows. It’s a rotting corpse on the inside, consumed by Kevin Johnson and left to bloat by Schultz after his latest return.
@scwirpeo Жыл бұрын
Basically sums up how I felt when I worked in Starbucks. We had so few people I was regularly running 13 hour shifts alone and had one part timer to close. Then we might have been graced with enough hours to get a second person into the new drink rollouts. If I could have gotten one more full shift a day our building would have been immaculate and and we would have seen our daily take easily go over our 7k average. We would have spent a considerable amount less on training too as we wouldn't loose workers every single time rent in the area went up. Haven't seen any other of this guy's videos but honestly just based on his channel name and attitude in this one he seems like the kind of person that believes in the exceptionalism propaganda from these CEOs that they make or break the company and every single employee under them is irrelevant. The reality is that the top management in Starbucks has been so out of touch for so long with what actual business in their locations looks like they basically have as much understanding of the work on the ground floor as say the CEO of an animal feed company would have of a Starbucks location.
@Cherryblossoms110 Жыл бұрын
it really goes to show you that a bottom-down approach where you do not give individual stores the power to make changes is inherently unsustainable. There is a limit to what one human being can do, and the one human being at the top will never understand the ins-and-outs and subtle nuances of each of the 39,000 stores. It's just too much information, and thinking you have the right to dictate the way they operate is just arrogance.
@samv7212 Жыл бұрын
When he showed those charts, I was like WTF this is supposed to be easy to learn with every drink carefully choreographed, and that is before customization
@PoisenedViolet12 Жыл бұрын
'Unskilled labor' doesn't exist. Even the most straight forward jobs require practice and thought if you want them done correctly. Shit like that was made up by assholes just like Shultz as an excuse to underpay workers. We really need to go back to the French method of dealing with people like him
@burnt-croissants Жыл бұрын
Former starbucks barista here, one of the first things they tell us is that we’re aren’t Starbuck employees, we’re Starbucks “partners” because we’re one big happy coffee community. As if we aren’t service workers being worked to exhaustion and having to deal with rude customers all day under a mega corpo. Funny how the sense of community evaporates when we demand common and decent worker rights. Support local coffee shops, if you can. :)
@jdan6122 Жыл бұрын
Worked to “exhaustion” at a STARBUCKS LMFAOOO 😂😂😂the world is way too soft nowadays
@alanhorton7300 Жыл бұрын
@@jdan6122 Spoken like someone who has never worked outside of an office.
@MaryamMaqdisi Жыл бұрын
@@jdan6122 as a human who talks to service workers I can attest they’re often overworked and underpaid, whether they work at grocery stores, restaurants or elsewhere, may not be consumers’ fault but the least we can do is to be nice, treat them as humans and appreciate their work. Hope y’all get unions and fair wages and benefits!
@peterdecroos1654 Жыл бұрын
@@jdan6122 as a software engineer who makes easily over quadruple what they make while working at the very same Starbucks. I see them every day. they work hard are definitely underpaid for the value they are producing. pay these people more
@drzerogi Жыл бұрын
@@peterdecroos1654 That reason why you get paid more is because you have skills that are rare and take time, investment, and hard work to develop. The argument shouldn't be weither Starbucks workers work "hard", but rather, if the skills they possess are rare, valuable, and difficult to replace. Their pay reflects that.
@seapeajones Жыл бұрын
They don't have to crush unions. They have to, like most businesses, re-examine pay scales, especially bonuses. The c suite isn't worth what they've been paid.
@andrasfogarasi5014 Жыл бұрын
I don't think you quite comprehend the scale here. The C Suite is paid at most $100M a year. If Starbucks fired all of them, their operating margins would increase by 0.3%. A respectable amount, but not by any means enough.
@samv7212 Жыл бұрын
Weather the money is to be found in corperate executive compensation or just in the shareholder profits in general is not important. The video clearly showed they have the profit margin the pay their workers more even if they kept executive pay the same.
@crota5059 Жыл бұрын
@@andrasfogarasi5014 re-examine pay scale and fire are not the same thing, i think what they mean i pay those people less and drop some of that money lower in the chain to the forward facing people of the company like the baristas and store managers
@ramonas4328 Жыл бұрын
As you say, zoomers & millenials are 80% of Starbucks' customer base now. I don't have any data, but I have a hunch many millenials, and a majority of Gen Z, actively support the unionization efforts' and probably find the current Starbucks media representation as traditional, scorched-earth, and union-busting. This characterization is a lot more damaging to my eyes than being seen as a legacy food service brand, because at this point that's kind of what Starbucks is. Who will they turn to if they alienate all the young people from their customer base?
@LafayetteCCurtis Жыл бұрын
Did you miss the part about Starbucks caring more about what their profit margin looks like to shareholders and investors than about their image in the eyes of their customers?
@treyshaffer Жыл бұрын
Unfortunately, Starbucks holds such a monopoly in many parts of American (suburbs particularly) that they don't really need to practice ethical business practices to stay afloat at this point. All this social responsibility fluff is just so some of the execs can pat themselves on the back in addition to receiving their paychecks that are 2000x more than the average Starbucks employee
@ramonas4328 Жыл бұрын
@@LafayetteCCurtis Bro I'm not arguing with anyone naming themselves after long-dead Roman emperors 💀💀💀
@lazyporcupine2360 Жыл бұрын
right? The amount of grift in this economy is frighting. if you can take what is maybe $0.12 worth of cup, and maybe $0.17 worth of coffee and charge north of $5 for that cup you can afford to pay your employees better.
@SgtJoeSmith Жыл бұрын
@@lazyporcupine2360 I agree! the employees in columbia picking the beans for $2 an hour need to unionize and get paid more!
@spoddie Жыл бұрын
Every time customers are mentioned, he really means American customers. The rest of world already had coffee.
@andrasfogarasi5014 Жыл бұрын
It's a bit amusing to see the video talking about how Starbucks invented a diverse range of coffee drinks in the 1980s when these drinks already existed in the 19th century.
@blake9746 Жыл бұрын
@@alec16 have you heard of a cappuccino? Starbucks brought several foreign drinks you're probably familiar with to the American market
@BerutaBG27 күн бұрын
Welcome to the US-Centrism bias that are youtube video esseyss
@scheck006 Жыл бұрын
All of this to say that SB would have to earn 10% marginal profit instead of 14% to pay their workers a decent wage.
@m.streicher8286 Жыл бұрын
The thumbnail and title are extremely stupid
@ross4 Жыл бұрын
The title of this video is ridiculous. Starbucks would “survive” just fine with unionized workers, it’s just that investors and executives might take a bit less of the profits. (How awful 🙄)
@WitchMedusa Жыл бұрын
Why do you care? If you're not happy with what they pay then leave. Like I have no idea how someones identity could be so intermeshed with their employment that they feel the need to "fight" for a union. In my experience, people who care about unions are losers with no life outside work or those who just want to complain all day.
@ross4 Жыл бұрын
@@WitchMedusa Because some people actually care about making their workplace better for everyone, rather than just quitting. Someone is going to be working these jobs no matter what. I have a lot of respect for them trying to improve things for future workers!
@organizedchaos4559 Жыл бұрын
@@WitchMedusa what? I want a higher wage so I have more money and therefore more time to do other things because I don’t need to be constantly working
@ross4 Жыл бұрын
If a business can’t survive when forced to treat their workers right… maybe that business shouldn’t exist. Edit: finished the video and apparently Starbucks would survive just fine. Just slightly more margin going back to workers instead of investors. Seems fine to me 🤷The workers are the ones actually creating most of the value.
@ross4 Жыл бұрын
@@thealienrobotanthropologist Yep! Other workers like food suppliers, coffee farmers, even the workers building the retail stores contribute too. But without the workers there would be no Starbucks.
@user-rh3pe7um8d Жыл бұрын
@@thealienrobotanthropologist According to MArx, maybe. But not according to the current economic consensus.
@user-rh3pe7um8d Жыл бұрын
@@ross4 There are multiple factors of production. Without capital or entrepreneurship there also would be no Starbucks.
@scpatl4now Жыл бұрын
They seem to have money for Howard to buy back 191 million worth of stock in the first quarter of 2023 with plans to buy back 20 billion over the next several years...I call BS on this video for that one reason. It's information that isn't that hard to find either.
@ross4 Жыл бұрын
@@user-rh3pe7um8d Right, without that huge amount of capital there would be local entrepreneurs who work and own small businesses… the coffee shops Starbucks killed so many of.
@TastySnackies Жыл бұрын
This video showcases how fragile this entire system is, and that we are all collectively living on economically borrowed time.
@Commievn Жыл бұрын
That is why countries with best quality of life tend to have the largest debts. There are few exceptions of course like Nordic countries but that is because they have very small population relatively to their landmass.
@eafortson Жыл бұрын
It would have been interesting to see a bit more of a macro view with regards to the economic situation Starbucks was in over the period of time evaluated for the figures. Like how much they received in covid relief, how much they increased profits as a reaction to inflation, what if any bonuses or stock buy backs were made by executives etc. I think this would have been helpful to determine if Starbucks truly couldn’t survive this wage increase, or if they couldn’t survive it because like every other corporation they didn’t practice good stewardship to weather the economic storm and instead, insulated shareholders, and tried to pass the reckoning off to consumers and employees to just suck up and take the hit.
@scpatl4now Жыл бұрын
There have been substantial stock buybacks starting with 191 million in the first quarter of this year...with a lot more planned.
@nuance9000 Жыл бұрын
The math in the video makes alot of assumptions, and I'd assume a $5 bump in employee pay won't destroy their margins.... But still, the point is the same: Starbucks sold itself as a new company innovating the business model, when in fact it's just another corporate restaurant chain
@donaldlyons17 Жыл бұрын
@@nuance9000 They have the same basic issues far as I can tell so how are they going to offer anything without huge profits? More than one KZbinr (far as I know) sold their stocks that did not continue to provide dividends....
@SpaceRaptor510 Жыл бұрын
they'd only shed 4% profit to give their empolyees a decent wage. If a company can't pay its workers then maybe it shouldn't exist
@DavidJones-pv8zz Жыл бұрын
if you ran a public company, that 4% profit margin has a huge impact on your stock price....we live in a capitalistic world where companies focus on the short term (how's the stock price this quarter? this year?)...4% difference in profit margin is huge
@SpaceRaptor510 Жыл бұрын
@@DavidJones-pv8zz I. Don't. Care. If a company can't afford to pay their employees then the company should go broke
@jordansamuel3604 Жыл бұрын
Yeah Starbucks could pay every employee $20/hr today with changing nothing else, and still maintain double digit profit margins.
@wesleycanada3675 Жыл бұрын
@DavidJones-pv8zz OHH! Will someone think of the share holders! They are the real ones struggling to make end meet in a cost of living crisis
@andrewsandoval2685 Жыл бұрын
It can afford 1.4 billion but that's a very big cut to make. Which is why they're fighting like hell to stop it
@columbo47 Жыл бұрын
"You see where this line meets this line? That's why no workers should be able to pay their rent." This idea of infinite growth forever is both a fantasy for 99% of companies and is making the world a far worse place.
@WitchMedusa Жыл бұрын
Wrong, also the issue is inflation. Not cause it's high lately, no, because it exists at all. We need a return to a deflationary monitory system like how gold use to be. Maybe in the modern world this is with a private crypto like Monero. But that is the root of all these issues.
@columbo47 Жыл бұрын
@@WitchMedusa Yes, I'm sure if inflation was under control and crypto was less of a joke, the sugary coffee company could achieve their goal of growing infinitely and looking cutting edge forever.
@lt1940 Жыл бұрын
@@WitchMedusa starbucks galactic empire when?
@weird-guy Жыл бұрын
Ya right, crypto that thing that is useless unless you are a money launderer😂
@jamesphillips2285 Жыл бұрын
@@columbo47 Monero is one of the better cryptocurrencies out there. Bitcoin (BTC) that everyone has heard about was captured by banking interests in 2014-2017. Scaling to meet expected transaction demand was blocked. Converting it from deflationary money to a ponzi-adjacent collectable.
@tjsantiago4500 Жыл бұрын
I hope the unions succeed
@seankelly819 Жыл бұрын
Amen
@olivevista5086 Жыл бұрын
If you need to limit your employee’s rights and stomp on their well-being to succeed, you shouldn’t be allowed to succeed
@Anti-Taxxer Жыл бұрын
If you need to form a labor market cartel and extort your employer in order to get a raise, you are a pathetic worker and deserve nothing.
@havencat9337 Жыл бұрын
well said!
@ross4 Жыл бұрын
So you admit the title of this video is false? You concluded Starbucks would survive just fine with a union- it would merely result in slightly lower margins for investors, with more of the profit going to workers… the ones who actually create most of the value for the company.
@Bdubuc0401 Жыл бұрын
Uh yeah I worked as a shift supervisor ten years ago and I can personally say that I've never had a good experience with corporate Starbucks. I never felt appreciated or valued, everything they do felt very "smoke and mirrors", and my coworkers felt the same way. Things like being called "partners" instead of "employees" since everybody got like 2 cents a year in company stock. They do these to sounds nice and progressive when in reality I'd make more from a 5¢ raise than the bonuses. On a personal level it wasn't better. I worked with a young kid for about a year, we closed together 5 nights a week. Nobody knew, but he was struggling and tragically took his own life one afternoon when he was supposed to be at work. He shot himself in the head. I'll never forget the feeling I got in my stomach when I found out why he didn't pick up when I called to ask where he was at when he didn't show up to his shift. Once word broke and we figured out what happened, I called the district manager to tell her I was shutting down because everyone on shift was crying. On top of just... Being human and letting us grieve, we weren't going to be able to provide service with a smile after that. She told me that was absolutely unacceptable and hung up. I got a call from the store manager 5 minutes after also telling me it was unacceptable to close. So I turned my emotions off and sent my crew home, running the store by myself until close. I was written up the next day for sending them home as there's supposed to be two people in the store at all times. Needless to say, I quit after that and never went back. All of this is on top of permanently running skeleton crews, low pay, and general bullshit that every fast food worker deals with. Anyone who thinks Starbucks is any different or better than other fast food companies are under a delusion. It's been bad for at least a decade, but I suspect longer.
@Kage-jk4pj8 ай бұрын
I had to do a 4 year degree and then a bunch of courses on top of that to be treated with respect and make good money. You deserve to be treated exactly how you were.
@Fractured_Unity7 ай бұрын
@@Kage-jk4pjClearly you missed out on the point of your humanities Gen Eds. Every person deserves unconditional respect of their rights and access to equal opportunity because it increases the subjective value of all our lives. You might be respected for you economic output, but start spewing your ignorant and selfish ideas and you’ll quickly lose the respect of most any person you talk to; college degree or not.
@LikaLaruku Жыл бұрын
Starbucks doesn't seem to be doing so great in Washington or Oregon anymore. They bought out every independant cafe that crossed their path in the 00s & now they're getting absolutely crushed by Dutch Brothers. Any coffee place who doesn't have lavender & Irish cream on the flavor list isn't getting a penny from me.
@LikaLaruku Жыл бұрын
Remember the Paradise Fire in California that burnt down a whole town? Starbuck rival Dutch Brothers offered to find employment & housing for everyone from Paradise.
@onlinealias622 Жыл бұрын
Sadly Dutch bros makes trash coffee
@yob_woc Жыл бұрын
Dutch bros is nasty tbh
@AS-fu9jn Жыл бұрын
Starbucks does have Irish cream syrup now. It came out last winter I think. I honestly though lavender or rose would have been this summers flavor, but we got macadamia instead.
@chadwells7562 Жыл бұрын
Great news!
@FlaneurSolitaire Жыл бұрын
So the only way to remain a "socially responsible" business is to crush unionization? That is some 1984-level ideological absurdity there.
@drzerogi Жыл бұрын
Have you read and understood 1984? Because union-busting has nothing to do with that book.
@shanweeboy Жыл бұрын
@@drzerogi He's saying it's some slavery is freedom logic on account of them curtailing worker unions in the name of the workers.
@FlaneurSolitaire Жыл бұрын
@@drzerogi Umm... I know that. I was thinking of the intrinsically absurd ideological distortions the book talks about, as in "Freedom is Slavery" and "War is Peace". I find "union-busting is socially responsible business" about just as dystopian and illogical.
@weird-guy Жыл бұрын
Someone think of the shareholders , poor guys investing money and then only see a lower amount very disheartening. Like those saying they should get paid shit because everyone can do it, but that logic is stupid to me, because if everyone can do it why don’t everyone drink from household coffee machines, and coffee shops aren’t dead, also we really saw who was really needed for a functional world during the pandemic, if that how he live know 90% of works would not exist.
@will-ye Жыл бұрын
Did Starbucks pay for this video?
@etienne2315 Жыл бұрын
I did miss the perspective of the workers in this video indeed.
@ericcamara8072 Жыл бұрын
Probably with gift cards
@weird-guy Жыл бұрын
I don’t think it’s a paid “ad”,is that he sees everything from a business perspective and not a society one To see paid “ads” you can watch CNBC is clear as water , when they do it, they must have handshake deals because if I worked at FTC I would fine them😂
@kiwibread101 Жыл бұрын
If you can't operate a business while paying your employees fairly, don't operate a business.
@1stGruhn Жыл бұрын
define fairly? These workers aren't slaves, they aren't obligated to work there. I've changed careers 3 times. Each time, I've taken a cut in pay but within 2yrs made more than I had at the previous career. Its stupid to think that someone hawking $5-10 sugar syrup with water and effective candies should get paid well enough to raise family. You have to make yourself valuable to the company you work for or it isn't worth their time to hire and train you. These jobs are designed for low skill workers... the solution is to become more skilled, and to seek better employment. I know it is hard work... I've done it several times. I empathize with the time constraints and long hours it takes. I don't have a wealthy family, I've fully supported myself since I was 18. But I have zero sympathy for people trying to extort money out of an employer when they refuse to better themselves. Labor is the worker's capital, use it wisely and leverage it to get better pay by making it more valuable.
@kiwibread101 Жыл бұрын
@@1stGruhn There are no jobs that aren't worth paying a livable wage. If you don't think employees in retail, logistics or food service deserve to be paid enough to raise a family on, then plan on not buying anything. Our economy runs on underpaid workers.
@MaryamMaqdisi Жыл бұрын
Amen
@OurLordandSaviorSigmar Жыл бұрын
@@1stGruhn just because you made it through, doesn't mean that everyone has the same circumstances. There's a reason why it's called collective bargaining. The interests of the investors and the workers are to be balanced. If the math checks out, and a win-win solution is there, then why not.
@1stGruhn Жыл бұрын
@@OurLordandSaviorSigmar Collective bargaining is just another way of saying monopolizing labor. The same inefficiencies and corruptions that make monopolies bad on the product side make it bad on the labor side. And @Lily, there are tons of jobs that aren't worth paying a livable wage to: Fast food chains - there is a reason they are automating this. A person standing at the counter isn't worth $25/hr. Ideally a teen worker, who doesn't need to support a family would get this job so they can start to gain the needed job experience for future better pay. By forcing such high minimum wages for entry level positions, you force businesses to not hire inexperienced workers: this harms low skill workers and keeps them out of the market. Highly repetitive low skill positions that can't be automated: while the "can't be automated" aspect is slowing diminishing in what falls under it. Take for instance recycling, you need an army of low skilled workers sifting through garbage to sort out the different types of plastics. You can't sell recycled goods for more than it costs to make them from raw materials or why buy them? Plastics are quite cheap to make. The margin for recycled plastics are such that around 95% of recycled plastics aren't worth selling and literally just get packaged up and go straight to the landfill. To correct this we need to either make labor cheaper in this area or make plastics easier to repurpose. Making plastics more expensive would just be inflationary, and wouldn't help low wages: increasing the cost of living isn't going to help a 'livable' wage issue. I highly recommend googling "Why racists love the minimum wage" You aren't considering overhead when you discuss "livable" wages. I use to work for a company doing IT work. They charged clients $100/hr for my labor. I got $18/hr at the time. You might think they were getting 82/hr for my time but they weren't. Best case, they may have been getting around 10. Health care, insurance, taxes, office fees, software costs, tool cost, driving expenses, and factoring in administrative overhead, most of the excess was eaten. I eventually got that extra 10/hr and moved on to a different company when they said they couldn't afford to pay me any more. I said I fully understood their issue and that I couldn't afford not to get paid more when I got an offer for more. There are millions of job opening in the services/trades. Unions are the reason it takes so long to re-train. It is pure cronyism: you don't need to work 6yrs to be eligible for an electrician license, yet that is what Unions have mandated. HVAC is a tad easier to get into. You don't need to work in a job environment where you aren't paid well. Look for a job you'd be capable of doing, see what the requirements are, then start training for it. 1-2yrs is mostly what it would take (sometimes less), to be eligible for that job.
@dr.badass702 Жыл бұрын
It’s amazing that Starbucks - Union-crushing Starbucks - is kind of used as a shorthand for “leftist” by a lot of pundits and politicians on the right.
@SeanOfEire Жыл бұрын
Most of these leftist bashers have no concept of political theory and operate entirely on a primal wannabe bourgeois or lumpen frame of view
@SimonSozzi7258 Жыл бұрын
That's because they're fundamentally Leftist in principle. Left has NOTHING to do with the culture war and everything to do with workers rights.
@behrensf84 Жыл бұрын
Dude, I’ve been watching this video for almost 3/4 in and we haven’t gotten to the Union part…
@etienne2315 Жыл бұрын
Jeah also no mention of bonusses and stock buybacks a little dissapointing.
@weird-guy Жыл бұрын
He is an mba afterall 😂
@Nether2342 Жыл бұрын
There’s some pretty large discrepancies in the math here. 1) The number used In the video to describe worker wages didn’t factor that it was for wages AND benefits, which the benefits half would actually go down, not up, because the amount paid for by the employees goes up since benefit witholdings are a percentage of wages. 2) a large chunk of those wages is not going to be increased at all by a $20 p/hr starting wage because it’s the compensation of employees such as executives, managers, and GMs who all make substantially more than 20 an hour already. 3) starbucks margins are lower than they should be because starbucks owns way too many corporate locations which have much lower margins than franchises. Most companies at Starbucks scale have almost no corporate owned locations or are actively transitioning to a 100% franchised strategy, which raises margins. It’s unreasonable and not mathematically sound to say raising wages would impact margins as much as this video states.
@ModernMBA Жыл бұрын
It would be interesting to see what you deem to be mathematically sound. There is always subjectivity and assumptions in hypotheticals. 1. Employers spend on average ~$7,000 per employee on benefits (assuming single coverage). Starbucks doesn't specify of its 248,000 retail workers in the United States, how many were part-time, how many were full-time, and how many qualified for benefits. If we assume that all 248,000 workers were full-time employees with single coverage, total benefits would have cost $1.7B. $1.7B in benefits would be 20%, not "half" of the $8.1B paid out in total wages and benefits. 2. You might be overestimating the number of managers / GMs and their wages. The unions are demanding $20 per hour as the starting minimum with higher rates depending on tenure and position. A shift supervisor would have a minimum wage of $25.40 an hour. Based on LinkedIn, there are currently ~2,500 district managers and ~2,500 GMs working in the US. The average nationwide salary for a district manager is ~$70K and for a GM it's ~$95K. By volume, 5,000 managers + GMs combined represent just 2% of the 248,000 retail workers in the US. The remaining 200,000+ employees (we can say 90% if you want to be conservative) are frontline hourly baristas. Lastly, managers and GMs are salaried positions. Baristas are hourly. The union's are not just asking for $3-5 more per hour but also guaranteed 37-hour work weeks. The combined impact of higher minimum hours and higher minimum wages should not be understated. 3. Starbuck's margins are not "lower than what they should be." They are low because that is how the company has built itself over the past 40 years. As explained in the licensing segment, it was an deliberate decision by the company give up margins in exchange for control and not follow a conventional franchise model. From Howard's perspective, control is more important to Starbucks than profits - protecting the brand and maintaining the store experience at scale has been critical to justifying Starbuck's premium positioning and establishing high WTP from consumers around the world. 4. As mentioned and visualized, even if the projections are wildly over the mark and you cut the estimate by 50%, the operating margin goes down by 2%. Starbucks wouldn't let it come to this, which is why anecdotally, baristas nowadays have reported it's getting harder to get more hours despite being paid $17 / hour. The projections are not designed to be a magic calculation of the future but a demonstration of how much is at stake. Starbucks makes it difficult for outsiders to piece together its economics for this very reason. They recently started blending Asia and Europe together to disguise Europe and China's underperformance within the greater international business.
@Changsnoop Жыл бұрын
Don't you sense the irony in that concluding statement? "In order to maintain a forward-thinking image, Starbucks must prevent unionization at all costs." Yet, crushing unions will inevitably deteriorate the company's social capital as a champion for corporate social responsibility that it tries so hard to protect. Starbucks' means to preserve its reputation is actively ruining it.
@parkerdavis7132 Жыл бұрын
Im almost certain the concluding statement is one of ironic meaning. It's more so detailing how as a result of the business decisions that Starbucks engaged in; they are now at this loss-loss crossroads where they must fundamentally betray their values.
@frontiervirtcharter Жыл бұрын
As Abe Lincoln would have said it if he were around today, "You can gaslight all the people some of the time, and some of the people all of the time, but you can't gaslight everyone forever." Sooner or later it will catch up with you.
@JohnSmith-nz1vj Жыл бұрын
So literally it's just their image as cool and hip that Starbucks management wants, but they're ok with the optics of them treating their workers like trash? It's greed, plain and simple. The hit to those operating margins aren't making or breaking the company, but is just about their growth story. This is not a question of survival for Starbucks, it is for their workers.
@DF-wl8nj Жыл бұрын
That’s a bit of an oversimplification. Starbucks needs a value statement to justify why it’s not just a more expensive McDonalds, as that allows it to sustain higher costs for products to support its bottom line. I doubt they’re “okay” with appearing to treat their workers like trash either, but I suspect as they see it the choice is either lose so much margin that they can’t sustain their value proposition, and go under, or appear to have poor worker treatment and weaken their value proposition. They’re essentially making a gamble that the former option is more dangerous It’s also worth noting that Starbucks hardly treats their workers like trash. There are still places in the world where workers are basically slaves who may be abused and exploited by business owners at will. In comparison, Starbucks workers are perhaps slightly underpaid compared to their real provided value, and would prefer more schedule stability. That’s hardly being treated “like trash”, those are common situations among all workers, blue and white collar, across the world.
@stetson999 Жыл бұрын
If workers are treated so miserably, they should try doing this thing called “learning a marketable skill” so that they can then do this other thing called “getting a better job.” Unskilled labor like pouring coffee will never, ever earn a livable wage. And that’s a fantastic thing, because it shouldn’t.
@DF-wl8nj Жыл бұрын
@@stetson999 what a strange position. The vast majority of labor that has existed since the Industrial Revolution is unskilled. There are very few jobs that can really be considered skilled even in sectors that traditionally have paid very good wages, such as manufacturing. Certainly, for the majority of positions manufacturing is not more skilled than being a barista, but if we said autoworkers should never make a living wage I think we would all intuitively recognize that as being callous and unfair.
@wanusanus4061 Жыл бұрын
@@stetson999 They should be paid the monetary value of their labor
@m1lk0meda Жыл бұрын
Starbucks has become the "target" of coffee and cafes. Upping the stars needed for rewards was the final straw for me, ill be buying from local cafes with personal touches from now on.
@benm3382 Жыл бұрын
Same. I wasn't loyal to them and I like going to local cafes, but I did enjoy getting the rewards and regularly ordering from them. The new reward levels just made it feel like they are wringing every cent out of you, meanwhile the stores are just getting messier and less pleasant. So unless I'm given a gift card I don't even think about Starbucks.
@AKK5I Жыл бұрын
Stop buying from Starbucks.
@Ciborium Жыл бұрын
I stopped buying from Starbucks because it got too expensive. I won't go back if they unionize. Going to Starbucks will be like going to the DMV. They won't be able to fire bad or lazy employees because of union intransigence. I know for a FACT that unionized workers cannot be fired for anything less than committing a felony on the job. Prices will double as the union will demand the sky. Unions will destroy Starbucks like unions have destroyed other industries, e.g., airline and automotive.
@anishadamane4179 Жыл бұрын
No
@groslait7814 Жыл бұрын
no way consumers don’t care the causes but the prices and values which provide with quality of life , even black people can hold a cup of starbuck which instant make a black innocent
@ruelongcha Жыл бұрын
sadly i don’t think brittany from bumfk ohio cares🤣 she will continue sipping those 500-calorie $7 frappuchinos happily along with all her friends
@mantolinez Жыл бұрын
It's truly bad. Why do americans like it so much? The worst coffee.
@gigiopincio5006 Жыл бұрын
"there is not a coffee company with our ability behind the counter in terms of flavors, syrups, modifiers, foam". Maybe cause they make, idk, coffee?
@DGPHolyHandgrenade Жыл бұрын
As the observation goes, they'll spend untold millions to avoid shelling out thousands to workers. And I'd add, Amazon hiring Pinkertons for union busting isnt exactly subtle either.
@chinguunerdenebadrakh7022 Жыл бұрын
Thousands per worker* It absolutely makes financial sense for these businesses to spend millions to avoid that pay raise because it quickly adds up over the total workforce.
@DGPHolyHandgrenade Жыл бұрын
@@chinguunerdenebadrakh7022 if you cant afford your workforce, then you have no business being in business. Exploitative conditions perpetuating and using vast company resources (the untold millions) to keep the exploitative conditions present is a really bad look dude. Really surprised you're trying to genuinely stick up for this practice. Also, that doesnt change the fact that on average, these companies are paying more and risking a lot more with the union busting tactics than they would lose by just negotiating as is the worker's rights. Instead, they're spending on the union busting *and* conceding to unions in the long run not to mention really steep fines for breaking laws. Seems rather fiscally irresponsible to me.
@chinguunerdenebadrakh7022 Жыл бұрын
@@DGPHolyHandgrenade read my words. I didn't say it was a good thing, I said it made absolute financial sense. It can make financial sense to make heroin and sell it, that doesn't mean I'm saying it's a great, ethical thing to do. And for the record, I am for unions. If you've been paying attention to labor movements for the past half century, union busting absolutely pays off. Union membership halved in USA from 1983 to 2020. Union regulation has been laxed (by legislators in pockets of union busting lobbyists). Why do you think US unions so little power compared to say ones in France or Germany? Because companies have been union busting more aggressively (not necessarily cuz US companies are more greedy, their regulatory framework is just looser on this). Have you even seen the attitude towards unions in some places. It's negative af. Where does that come from? Obviously lobbyist cooked propaganda at work places where they tell you union fees are too much and will give you nothing. This has absolutely paid off financially. Btw, Coca Cola spent about 630,000 dollars on union busting in a year. Is that REALLY a massive expense? They make 20 billion USD in profits every year, 630,000 is nothing. And in exchange, they suppress the pay and working conditions of +80,000 employees. More than worth it financially. And no, companies aren't conceding voluntarily. They are often pre-emptively firing employees with unionizing attempts and only conceding when there's no other alternative.
@BulletTracer Жыл бұрын
@@chinguunerdenebadrakh7022 he literally proved in the video they can not only afford it, they would just have to take less profit in the form of lower margins 😂 and not even that much… 14% to 10%… You’re a propagandized serf.
@pretzelstick320 Жыл бұрын
Amazon’s workplace is orders of magnitude worse than Starbucks’
@armeniandude311 ай бұрын
The way they treat their employees is like how you would treat a dog that you don't really like but have only to show your friends that you're a caring, respectful and responsible person. Actually tragic how they let their best employees go instead of digesting the concerns and addressing the growing issues they face as a corporation.
@cameronburnard2301 Жыл бұрын
So they could appease unions but they want to make more profit than less? Or to personify the company, they don't want to face that they have achieved much of their growth already so have stuck their head into the ground; they want to maintain high growth operating margins when they are now a matured, lower growth firm?
@markjacobs3232 Жыл бұрын
People ignore the fact that if they are revalued from high growth to low, the shares can dip as much as 40%(though a more reasonable is 15-20%) as well as not beating the market growth rate of 10%. This is important since peoples pensions are retirements are tied into it, and while it’s easy for some to say “hur dur greedy corpo” and yes greed is involved, it’s also telling the old lady with 700-800k saved and ready to retire that now it’s 400-500k, after decades.
@ComanderSazabi2000 Жыл бұрын
@@markjacobs3232 why didn't grandma diversify her portfolio? the working class are starving and at risk of losing their homes, but grandma's early retirement is more important?
@etienne2315 Жыл бұрын
I would argue that almost no grandma has put 800 K in starbucks stock. Also maybe the ability for people to retire should not be tied to the stock market.
@hereforthelaughs935 Жыл бұрын
@@markjacobs3232 that's a problem with retirement accounts and the way they are structured, which everyday workers do not need to solve. That is a government problem.
@cameronburnard2301 Жыл бұрын
@@markjacobs3232 valid point. You have probably explained the essence of why they have acted in this way - but instead of grandma, it is likely their own compensation they are worried about (thus this is why they are acting, but it has the side effect of affecting grandma). Not saying there aren't circumstances like the one you mentioned but I think it's predominantly the "greed" you mention. I think "greed" has negative connotations and has become emotionally charged. I prefer a different term. My term is rather egoism, which is what is "rational" in that circumstance (in that it is instrumental to maximize one's material possession...). These people waffling on about greed would do the same thing - it is just envy they don't have the opportunity, or because they have been adversely affected (not to say their action is right). But, the institutions facilitate this way of acting, so people will act in that way; no point pottering on about how someone has done something that is allowed. Instead, we should try change the rules...
@500ccRabbit Жыл бұрын
Every business channel sets ads to the maximum setting, not realizing it makes people leave early
@simonaspalovis1204 Жыл бұрын
If there is one thing I took from this video, it's this - what is defined as "coffee" has become very vague because of Starbucks.
@karlstrauss2330 Жыл бұрын
If corporations don’t start paying their workers more, Unions are just gonna keep growing more powerful.
@jorgeavelar98 Жыл бұрын
Starbucks already pays employees more than most other places. I dont understand why they should pay them more
@gameworkerty Жыл бұрын
@@jorgeavelar98 because it's not enough to live on. Those other workers should also be paid more.
@MrTAGGER88 Жыл бұрын
@@jorgeavelar98 what are ownership rates of apartments vs houses for 20-30 year olds?
@Anti-Taxxer Жыл бұрын
Spoken like someone who is truly economically illiterate.
@karlstrauss2330 Жыл бұрын
@@jorgeavelar98 I don’t understand why mediocre CEOs get bribed with billions of dollars to walk away while workers are on food stamps
@charlieinabox1164 Жыл бұрын
Worked for Starbux back in 2008 it wasn’t a coffee company, it was a pastry and milkshake company…
@phastcast Жыл бұрын
i love that it always boils down to "yeah we could pay people what they are owed and still make plenty of money, but then our investors that expect unlimited growth would think we're pussys"
@donaldlyons17 Жыл бұрын
It is always to capital people that businesses worry most about. They need the works but can't pay too much so in order to turn a profit they....
@magicvibrations51807 ай бұрын
It's unbelievable to me how condescending it is for them to call their employees "partners" while treating them like numbers. It's so insulting that they seem to think their employees won't be able to see right through that, and it shows how little they really think of them.
@MrDirzel Жыл бұрын
Great video, interesting to see that when it's all said and done it's all about the numbers. Lip service to social responsibility etc falls apart when it's not on the CEO's terms. Only worker cooperatives can truly have the worker's best interests at heart.
@ModernMBA Жыл бұрын
Thank you for your support and generosity, MrDirzel!
@USA-qm2bk Жыл бұрын
16 mins out of 29 and I haven’t heard about the union busting.
@johnqpublic770 Жыл бұрын
Starbucks always does the right thing for it's employees😂😂😂😂. Can't believe you said that...
@NotaPizzaGRL Жыл бұрын
I mean he's an MBA of course he'll take the employer's side. At least he's not pretending to be neutral like the so-called Fourth Estates.
@theartofbiz Жыл бұрын
Something that isn't mentioned about China but critical is that Starbucks' growth in China has actually slowed massively in recent years due to competitive pressures from up and coming players such as Luckin Coffee, as well as disruptions caused by the pandemic. This means Starbucks could no longer rely on China to be its growth engine, and had to return to relying on North America for increasing profits. But with NA already so saturated, there isn't much room left to grow revenue, thus they could only turn to cost-based approaches such as the anti-unionising efforts we currently see. I made a video talking about Starbucks' downfall and Luckin's rise in China due to differences in business strategy, product innovation and effects from pandemic disruptions, might be useful to you.
@pretzelstick320 Жыл бұрын
Who can blame China for promoting domestic companies.
@solario8628 Жыл бұрын
It's almost as if demanding exponentially increasing profits in a universe where scarcity exists just isn't realistic.
@suspendedhatch Жыл бұрын
A cheerleading video for Starbucks, finally coming to it's conclusion at 27 that if Starbucks allows unions, it's profits will drop slightly and then it will lose it's image and look like any other retail food service company, ie Chipotle
@clemhfandango. Жыл бұрын
This video has a very strong smell of Starbucks sponsorship against unions.
@jonasdauerbrenner6432 Жыл бұрын
well, the channel is called modern "MBA", this is what they learn
@hopkapi Жыл бұрын
@@danh9083 It's pretty anti-union to declare in the title of a video that a company "must crush unions to survive", then conclude the opposite (they'd just be less profitable), but pretend otherwise.
@HeroicRecaps Жыл бұрын
You think starbux introduced coffee to the masses? Wtf?
@dereklawr Жыл бұрын
The thing I didn't quite understand was outlined in another comment, that the drop in profit margins could have compounding effects. It's probably also important to note that those are hypothesised effects, and it's unclear if they would actually happen or not. Those being: their ability to sell stuff for the markups that they command is totally dependent on their brand image. So, if the brand is seen as not being worth as much, then customers might not be willing to pay the same markups. But, I don't know. It seems like the very public union battle could have the same effect, right? Investors aren't the ones buying retail drinks, and retail customers aren't looking at profit margins. But the retail customers would be more likely to have read about the union busting (even if most wouldn't care). It all is very uncertain, but it just seems like the public battle could have similar damaging effects as taking the union demands at face value. It seems like they should've just negotiated from the start, but I don't know. Obviously there are more factors at play, and a lot more information that they don't share in the public reports that might be influencing this decision
@oldmanenergy Жыл бұрын
The workers create all the value in Starbucks, they deserve to organize, they deserve to work in a democratized workplace, and they deserve all of the surplus value they create.
@kimmyp3275 Жыл бұрын
One hour of work they can’t pay for some of those drinks.
@77maydayZZ Жыл бұрын
The more I watch and re-watch this video, the more disgusted I find myself. So basically its okay to crush unions if your company still looks cool and maintains double digit growth (greater than the low teens). Man, you sound like a great employer...
@ProcrastPerfection Жыл бұрын
Because the brand can’t lose its image as an outlier to the fast food model. Once you see the facade, Starbucks will begin to slip into Arby’s notoriety i.e. lame, serviceable. Losing investors is just the first sign that you are leaving the cool kids club.
@SB-mg1wy Жыл бұрын
@@ProcrastPerfection but the fact is Starbucks is yet another fast food place. All fast food places offer Wi-Fi. McDonald's and Wendy's are clean enough that I can sit there for awhile, and the McCafe menu offers the same stuff as Starbucks. The food at starbucks is only moderately better than any fast food place, yet is ridiculously ovepriced
@Yaboishwa Жыл бұрын
Starbucks would be running into a lot fewer of these issues with unions if they redefined their labor practices on a corporate level. The things that kind of skated by mention in this video but is most important is not that the wage is totally unreasonable at Starbucks locations, but that their corporate restaurants are encouraged to overhire and then under schedule all of their employees shy of 25 hours/wk. This allows Starbucks to “provide healthcare to all workers” but hold all but a few workers below the full time wage threshold, which pushes most of the healthcare costs onto the employee and off of the business. I have a feeling that if people felt like they could consistently rely on getting 30 hrs/wk if they were a good worker then Starbucks would have a lot fewer demands to deal with and a much easier negotiation route to avoid unionization.
@jaydub7386 Жыл бұрын
I worked at Starbucks in the late 90s. The worst customers and my coworkers were awful. I never go there for coffee; I can make my own at home. I save money and time in the morning. Coffee is the fastest thing to prepare. Why would someone drive to a place, get out of their car wait in a busy store full of cranky people? Ridiculous.
@xa0wnerx10 ай бұрын
They are addicted.
@sersnuggles76977 ай бұрын
I used to work at a starbucks yet my one pet peeve with the company is that, they pride themselves for their service yet only pays the employee's minimum wage. Other companies does this as well but sometimes I wonder, what do they do to compensate for the extra service that the employees are expected to provide?
@GirtheAlienGoldfish Жыл бұрын
I'm still angry that Teavana was closed down because of Starbucks. It was my favorite place to get tea because I could sample it in the store. Like, I know that there are better places to get tea, but Teavana was accessible.
@theone9273 Жыл бұрын
Ethics and morality are fundamentally at odds with free market capitalism. Businesses will say all they want about having values but as soon as push comes to shove and their profit is at stake, capitalism takes over.
@DavidJones-pv8zz Жыл бұрын
you can't be socially responsible, eco friendly, have cheap prices and high profits....you can't have it all...
@etienne2315 Жыл бұрын
Especially if you also have to kick up billions to shareholders every year.
@LittleLilith481 Жыл бұрын
Here’s a sentence that destroys any argument on why star bucks should not unionize. “If you can not afford to pay your workers a living wage then you should not be in business.”
@dokidokiduckie Жыл бұрын
Love how this video can't help itself but shit on the required skill to be a good barista. Glad you guys think my job is easy and anyone can do it, really cool thing to say.
@billbillards569 Жыл бұрын
Solidarity!! America works best when it say "UNION YES"!!!
@josecipriano30482 ай бұрын
To anyone who's ever tried italian or portuguese coffee, it's no surprise that Starbucks failed there.
@samsanimationcorner3820 Жыл бұрын
A business that can only survive by treating it's workers poorly shouldn't be in business.
@Timothy.365 Жыл бұрын
This is always tough to analyze, most ppl admire what Starbucks is as a brand, how they transformed an everyday product into high margin, high end brand. It’s sad Howard has taken this approach to his workers, I try to stay away as much as possible, but too many ppl ignore how they treat their employees! Another great, insightful video 👍
@karlstrauss2330 Жыл бұрын
Corporations will bribe failing CEOs with billion of dollars to leave the company but refuse to give employees higher wages.
@RyuuOujiXS Жыл бұрын
If the employee's are too stupid to quit, they deserve to be treated however the owner sees fit.
@TheModdedwarfare3 Жыл бұрын
@@RyuuOujiXS Or they could form unions to make their jobs better. The culture of "just quit if you don't like it" causes everybody to be worse off but the CEO. There's not enough honest to God good jobs out there for everybody to have one so it is up to us to make these places great to work at.
@gur262 Жыл бұрын
And then someone turns around telling me that capitalism makes things cheaper. Which. Sometimes. Not this time though. I hate so much about this world. I can get a convenient salad at the supermarket. But. There's no benches anywhere. Parking spots sure. The only table i could sit down at without buying something is in the park.
@pretzelstick320 Жыл бұрын
@@TheModdedwarfare3Starbucks was a good job for me when I was in high school/early college. Better than minimum wage, tips, not too stressful, free coffee, free meals, stock options(it was like 2 shares but still cool) free Arizona state university, free pound of coffee per week(I used it to get free VIP parking at a local bank) low tier 401k. It’s really a pretty decent deal for 16-20yo if you take advantage of it all. The only main gripe I had with Starbucks is they tried to schedule me to opening shifts after a closing one. I just told my manager that I wanted a consistent schedule 6am-12pm, 4 days, same days, and they obliged.
@aceymac Жыл бұрын
First, SB should scale way back in Europe, to only what’s profitable (read, tourist areas). They can’t compete on quality or price when you can get a better cappuccino at a truck stop for less money. Besides, Europe still has national worker protections which the US and Asia lack. SB is an older well known company, time to stop promising shareholders unrealistic growth. SB will lose to the drive to unionize. If they work with unions now, they will lose less in contract negotiations and in public opinion. The public health crisis & 2008 changed everything for a generation. And this generation has access to real information, 10 years of virtue washing can be wiped away with a few TikTok posts. If you want to be seen as a beneficial market leader, you actually have to be one.
@poiu477 Жыл бұрын
If starbucks can't survive a union, than it should not exist, simple as that. All businesses should be worker owned AND unionized.
@trainzmarcel2074 Жыл бұрын
based
@dolomaticus1180 Жыл бұрын
If you look back thru history that every time this is done, the company usually goes under quickly unless certain steps happen. Unions usually exclude people and make certain that monopoly stays in place to protect the Union, not the worker.
@poiu477 Жыл бұрын
@@dolomaticus1180 unions are why we have a 40 hour workweek and any labor rights at all. People literally fought, bled, and died for our right to unionize, and through that struggle workers gained so much. It’s decades of corporate union busting propaganda that divides people. The whole point of a Union is specifically to collectively bargain for all the workers at a firm, so going around it and negotiating a separate contract is literally undermining the power the union has through the ability to cause a total work stoppage for better conditions or pay.
@andrasfogarasi5014 Жыл бұрын
Worker owned AND unionised? So what, the workers can go on strike against themselves?
@dolomaticus1180 Жыл бұрын
@@poiu477 And those moments are over. This is why I hate activism, the problems you stated were addressed and fixed, but the Unions still keep going and become a problem unto themselves. The same thing can be reflected in what happened to my community: Once the majority of the problems was solved, we needed to start doing the hard work of improving things ourselves, but an activist with no cause is broke. So the racket continues, looking for the next problem instead of helping.
@rosskgilmour Жыл бұрын
This is why sectoral bargaining is such a critical idea for service sector unions. A place like Starbucks isn’t incentived to unionize out of a fear that a non union shop will beat them on costs. Sectoral bargaining eliminates that issue because most shops and workers will negotiate a price for labour.
@sterlingarcher389 Жыл бұрын
I would rather just get a McFlurry from McDonald’s
@peterdecroos1654 Жыл бұрын
same amount of calories but significantly More delicious
@awill3454 Жыл бұрын
I would too but their machines are always under maintenance
@JP-JustSayin Жыл бұрын
Imagine a world where it was illegal NOT to compensate a worker with a share of ownership in the enterprise for every hour worked, as well as with wages ... where compensation with wages alone was seen as a form of slavery and was permissable in society only as a punishment for crimes.
@grandsome1 Жыл бұрын
That's called a Co-op, and they exist but don't expand as fast as corporations because no good deed goes unpunished.
@rafaelsanchez580 Жыл бұрын
If a company must underpay their employees and eliminate their bargaining power to survive, then that company must die.
@Anti-Taxxer Жыл бұрын
If workers must form a labor cartel ad d extort their employer to get a raise, then those are pathetically unproductive workers who deserved nothing to begin with.
@sam510938764 Жыл бұрын
@@Anti-Taxxer Then why is Starbucks trying to crush unions instead of mass firing every single one of these "unproductive" workers? The answer is simple, the business depends on them to function, thus they are not unproductive workers.
@Dita1994 Жыл бұрын
They’re not being underpaid though. They’re getting paid more than most retail workers.
@jamesphillips2285 Жыл бұрын
@@Anti-Taxxer Well it is not like we have Basic Income to give the workers any kind of bargaining power while negotiating wages. In the desperation to get cash-flow, desperate people will under-bid the people who know their worth.
@Anti-Taxxer Жыл бұрын
@@jamesphillips2285 Good thing there is no such thing as “basic income.” That is an utterly moronic idea that would prove to be economically cancerous. The workers without bargaining power-meaning, without any marketable skills or the ability to add value-deserve very little. It’s that simple.
@timd4821 Жыл бұрын
To make the fact about the really low wages paid in asia worse, the prices they charge in their branches there were adjusted to match US prices(I realized this during my visit the Philippines this year). I understand the import fees and taxes but they could atleast make an effort to closely match the wages that US employees get.
@spartanB0292 Жыл бұрын
Really? As a Filipino I've always viewed Starbucks as prohibitively expensive, but I wouldn't have thought that they're on par with US prices now.
@nunyabiznes33 Жыл бұрын
@@spartanB0292 good thing it don't affect poor folks like me drinking instant haha! Let the middle class spend their money on the social status coffee.
@suckmyartauds Жыл бұрын
You outline really well why the goal of high profit growth is fundamentally at odds with worker and customer wellbeing. Corporate social responsibility is only ever a hollow marketing tactic, because if these businesses cared about society like they care about continuous profit growth, they would be non profits. Or they would be begging democratic governments to buy them out. In our messed up system, its not enough to be a stable, moderately profitable business offering a reliable service. The top business owners and shareholders enjoy their outsized power and the upper middle class shareholders are terrified of falling into poverty so the vicious cycle goes on...
@weird-guy Жыл бұрын
I don’t I agree that business should be non profit, but I also think that no ceo is worth 200 times more than the lowest paid employee, we should incentive business that prioritize profits without taking from employees to increase those same profits.
@peterdecroos1654 Жыл бұрын
> they would be non profits. *ikea has entered the chat*
@chichichichilling4822 Жыл бұрын
"It's not enough to be a stable, moderately profitable business" This is what gets me about modern businesses. The obsession with constantly increasing profits. I find it so weird that a group of ostensibly rational investors can't realize that the line can't go up forever. It's so bizarre seeing one of the biggest companies in history (Facebook), lose investors because their already astronomical profits stagnated for 3 months out of nearly 2 decades. What kinda crazy world do we live in?
@Helperbot-2000 Жыл бұрын
@@chichichichilling4822 exactly, thats the problem, the end goal of capitalism us endless growth first and foremost, and since thats impossible to achieve, the customers amd employes take the hit to continue the growth
@Toastbastard Жыл бұрын
In other words, CSR is just a grand exercise in virtue signaling.
@goblinnnn Жыл бұрын
if your business can't afford to pay and unionize baristas then it shouldn't exist
@JuanRodriguez-rh4kp Жыл бұрын
Unions actually work for us the middle class. Look at union trade workers making 30 plus an hour. While most people still make 10-15 an hr.
@nixielee Жыл бұрын
It's not just the margins, EV would drop like a stone when everyone reads the news and rush to sell Starbucks stock. In the eyes of every shareholder, nothing good can come from unions
@SirMonday Жыл бұрын
A lot of this seems to come back to the fact that the two CEOs who aren't Schultz have actively gone against the fundamentals that Schultz used to build the business to begin with. Were those moves being made in pursuit of allaying shareholder concerns, or is it just catastrophically different ideas about the future of the business? When you said that Schultz was leaving and handing off the reins to his COO, I thought it'd mean less of a sudden course change than the last time he left, but then you immediately led into the selloff of the CPG business, which seems fundamentally antithetical to what Schultz was trying to do. Do we have any idea what's behind this higgledy-piggledgy approach across CEOs?
@ModernMBA Жыл бұрын
It's great that you picked up on this. If we read between the lines on the stories that have come out since Kevin Johnson's departure / Howard Schultz forcing his way back in, there was clearly bad blood between the two men. There are rumors that like with Bob Iger and Disney, Howard even after stepping away in 2018 continued to issue orders and influence company direction behind Kevin's back. Kevin never wanted to leave and the whole "family" excuse is a common trope, but the board clearly sided with Howard given his prehistory with Starbucks. The direction that Starbucks took under Kevin is so strangely different from Howard's, which is even weirder given that Kevin was Howard's own hand-picked / long-groomed successor. It's impossible to figure out what actually happened and what parts are standard corporate character-assassination / reputation laundering in the press until more information comes to light. Hence, it was intentional to just touch on that rabbit hole and leave viewers to connect such dots on their own. This kind of boardroom drama happens far more frequently at companies that are struggling versus ones that are stable and successful - hence Starbuck's greater recent emphasis to preserve its optics against unions, for investors, and by extension, to customers.
@theplanebrain Жыл бұрын
There is a universe where baristas of today don’t exist because without Schultz’s business they don’t have a place to exist. I bet Schultz sees it that way. One thing he did was turn cheap labor (arbitrary drink mixing) into non cheap labor (non arbitrary drink mixing). He calls Starbucks “retail” but “can I have that same shirt in large” is much easier than the normal Starbucks order.
@garret64647 ай бұрын
I completely an wholeheartedly disagree with anyone implying being a Starbucks barista is a difficult job in any way- and I work as a Starbucks barista. The standard of work people hold themselves to has dropped to the floor. Sure, most Starbucks prevent you from being high as balls every shift like most fast food workers are, but that’s no reason to pretend this shit is difficult
@benm3382 Жыл бұрын
In Vancouver, Starbucks has shuttered at least half their stores downtown while we have a dizzying array of local chains and one-offs. There's so much great coffee and so many patisseries around, theres almost no reason to go to Starbucks anymore. I used to find their stores very warm and inviting with the cosmopolitan theme and the hand picked music, even if it was corporate engineering anyway. But now it feels like they've stripped away any ounce of class or culture, so why on Earth would I choose them?
@MrWhangdoodles8 ай бұрын
If a company can't compensate its employees fairly without dying...it should've never existed. Considering OP hates Uber and its variations, he must hate Starbucks too.