Starbucks is going to lay off a lot of staff! Will sell the management rights of 83 stores in Europe

Starting a business for nearly half a century, Starbucks, an American coffee chain with 30000 stores around the world, can be seen almost everywhere from Russia to Buenos Aires.

Gradually reduce business in the European market

The European territory of the Starbucks empire. In September 1998, Britain's first Starbucks coffee shop opened on King's Road in London. Today, there are 211 Starbucks coffee shops in the UK with a history of 20 years. But it is not easy to do coffee business in Europe, even for Starbucks, which enters their "last battlefield"-Italy, known as the haute coffee shrine, which is Starbucks' 78th market in its global business.

Once the Italian DISS Starbucks was "toilet water", there was a long queue at the gate of Starbucks. Although it is a bit of an exaggeration, it at least shows that the Italian love of coffee is famous all over the world. It was only in September that Starbucks finally opened its first store in Milan, Italy.

A large number of loyal fans of Italian coffee lined up in front of Starbucks on the opening day.

According to media reports such as the Washington Post, Starbucks is gradually reducing its business in the European market, including selling 83 stores in France and the Netherlands to partner Alsea;, closing its offices in Amsterdam and shifting its focus to London. The Netherlands will retain a Starbucks-owned bakery with about 80 employees, while about 186 of its existing staff will be laid off or encouraged to apply for vacant jobs in London.

Starbucks partner Alsea is one of the largest chain catering groups in Mexico. In addition to Starbucks, it is also the main authorized operator of food brands such as Delta Pizza and Burger King in the Latin American market. Since establishing a partnership with Starbucks in 2002, Alsea has authorized more than 900 Starbucks stores in Latin America.

In the European market, in addition to taking over the operation of Starbucks stores, Alsea will also provide support for 179 Starbucks stores in France, the Netherlands, Belgium and Luxembourg. Starbucks currently has more than 260 stores in these four regional markets.

Starbucks' expansion in Europe has not been smooth and has been growing slowly in recent years. According to the company's financial results for fiscal year 2017, Starbucks' same-store passenger flow in the UK market fell slightly, with a 2% drop in revenue. EMEA (Europe, Middle East, Africa) market turnover increased by only 5%, mainly contributed by Turkey and the Middle East market.

It is not the first time for Starbucks to sell the right to operate a store to a partner. As early as 2016, Starbucks sold the rights to all its stores in Germany to AmRest, a Spanish catering company, which is Starbucks' partner in Poland, Bulgaria and other Eastern European countries.

Compared with European markets with dense independent coffee shops, relatively high market saturation and fierce competition, coffee consumer markets such as China have more potential for Starbucks. After Starbucks' European operations are streamlined and restructured, the group will focus more on breaking through the growth of the US and Chinese markets in the future.

However, even in these potential markets, challenges remain. According to Starbucks' financial results for the third quarter of 2018, its global same-store sales grew by only 1%, while same-store sales in China fell by 2%. Operating margins in China and the Asia-Pacific region fell 7.6%, the first decline in nine years.

Starbucks is going to lay off a lot of staff!

According to KevinJohnson, the major changes at Starbucks will begin this week and will continue through November, including a "leadership change" and some job changes. According to public information, Starbucks has undergone major senior personnel changes in recent months.

With regard to the layoffs at Starbucks, let's first draw a few key points:

1. Layoffs are accompanied by organizational restructuring.

2. The number of layoffs is uncertain, but there are a lot of people anyway.

3. Start at the top and lay off staff from top to bottom

4. Layoffs will begin this week and are expected to last until November.

During the Great Depression, global coffee chain giants such as Starbucks also began to lay off staff and even include senior executives when facing sales pressure. There is a wave of layoffs, and most people are not aware of the situation facing themselves, the company and the industry, and no one will remind you of what is going on in human resources management.

In fact, Starbucks puts a lot of pressure on its employees.

The departing partner complained about the three mountains: moon cakes, zongzi, QA, laughing every day at work, not laughing at all after duty, chasing this and chasing that, selling zongzi and selling moon cakes and card food, customers all thought there was a commission, and who knew that there was no commission, and they were scolded even if they didn't get a commission. I tried to finish work at 11:00 with the newlyweds and check the store inventory until 3: 00 in the morning, and the partner also took care of the "task" of selling cards and cups. With a monthly salary of thousands of dollars, bear the pressure of a monthly salary of tens of thousands.

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Layoffs, shop closures and declining performance have happened to Starbucks, which has been expanding and growing in previous years, which is believed to be something that most people can't imagine. It seems that this time, Starbucks reshuffle is really not small!