1255 ET - Starbucks believes it cut too many labor hours exiting the COVID-19 pandemic, and that around 80% of its footprint could benefit from added staff, KeyBanc Capital Markets analysts said in a research note after meeting with the coffee chain's CFO. To achieve its service goals -- which correlate with traffic growth -- the company thinks it needs to add back some of those hours with increased headcount, rather than more hours per worker, the analysts said. More labor will add further near-term pressure to Starbucks' store-level margins, which already face abnormally high coffee costs and tariff headwinds, the analysts say. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
May 19, 2025 12:56 ET (16:56 GMT)
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