As 2026 approaches, under the leadership of CEO Brian Niccol, Starbucks is implementing comprehensive business adjustments.   "We need to become a company that learns well and isn't afraid to experiment," Niccol stated in an interview on Yahoo Finance's "Opening Bid Unfiltered" podcast during the Dreamforce conference in San Francisco.   This includes keeping up with artificial intelligence (AI) trends and integrating them into Starbucks' operational framework. One of the current applications is the "Green Dot Assist," a virtual assistant platform designed to help employees in real-time with on-the-job issues.   "For example, if an employee encounters a malfunction with equipment or is unsure how to prepare a certain drink, this AI assistant enables us to provide support efficiently, helping them find the correct answers or solutions quickly," Niccol explained.   Starbucks is also exploring menu innovations to draw more morning traffic, including the introduction of protein-focused breakfast items and handcrafted pastries. Additionally, the company is significantly increasing investment in protein drinks and optimizing its official app.   "I believe the app has significant potential for voice ordering, and we can further enhance service predictability by anticipating what products customers might order," Niccol said.   At the end of September, Starbucks announced plans to close underperforming stores and cut headquarters jobs to improve profit margins, reallocating resources towards optimizing employee hours and product innovation in stores.   The company plans to reduce the number of its locations in Canada and the United States by approximately 1% in this fiscal year. By the end of this fiscal year, the total number of stores directly operated and authorized in the U.S. and Canada will decrease to nearly 18,300, down from about 18,842 at the end of the third quarter.   Starbucks will also eliminate 900 non-retail positions and freeze hiring for certain vacant positions. The total cost of this restructuring plan is estimated at around $1 billion.   In addition to the measures mentioned, Niccol has initiated several reforms: the restoration of condiment bars in stores, employee retraining, the restart of menu innovation projects, a television advertising campaign to reshape the brand image, and seeking partners for its business in China. Starbucks also commits to renovating 1,000 stores, adding more seating and greenery, as the company believes consumers continue to desire spaces to stay and relax.   "I believe this is more about an experience of 'integrating into the community' — when you sit in the store watching people come and go in the community, engaging with neighbors, friends, or family is very important," Niccol added.   Currently, due to rising living costs such as food, rent, and healthcare, consumer demand for dining out has decreased, and signs of a business turnaround for Starbucks have yet to appear.   In the third quarter of this fiscal year, same-store sales in the U.S. decreased by 2% year-over-year, with traffic down 4%; earnings per share fell 46% compared to the previous year; and operating profit margins experienced a significant decline of 660 basis points.   During the earnings call at the end of July, Niccol pointed out several positive signals, which investors are hopeful about. These signals include low double-digit growth in same-store sales at university locations, improved transaction trends in the U.S. region by the end of the quarter, and a "wave" of new beverage and food innovations planned for the next 12 months. Furthermore, Starbucks plans to invest $500 million next year in labor-related expenses, slightly below market rumors of $1 billion.   The company even hinted that operating profit margins may return to peak levels.   So far this year, Starbucks’ stock has declined by 10%, while the S&P 500 Index (^GSPC) has risen by 14%.   Starbucks is scheduled to release its fourth quarter earnings report for this fiscal year later this month.   Citi analyst Jon Tower noted in a report, "If Starbucks can overcome the impact of weak same-store sales and store closures in the U.S., and if the recently launched core product line (the protein series) is successfully promoted, the fourth quarter earnings report should provide a 'buying opportunity.' However, the situation is more complex: (1) News of store closures may disrupt the promotional effectiveness of the protein product series; (2) More signs indicate overall industry demand is weakening."   Tower added, "Weak demand, along with the fact that decisions on partnerships for the Chinese business have yet to be settled, suggests that management may wait until the investor day planned for February 2026 to disclose fiscal 2026 guidance and long-term strategic planning. In the absence of clear data support, Starbucks' stock movement may continue to depend on future same-store sales data from the U.S. region."