77. Major Starbucks Layoffs! Are You Watching Your Labor?

SUMMARY:

In this episode, the team dives into the latest Starbucks headline—1,100 corporate layoffs and a 30% menu reduction—unpacking what it means for the coffee industry at large. The hosts explore how big players like Starbucks are "trimming the fat" post-COVID, cutting non-revenue-generating roles and rethinking operational efficiency amid rising inflation and shifting consumer spending. Translating these lessons to indie coffee shops, they discuss the critical balance of labor versus revenue, the importance of agile decision-making, and why understanding your P&L (profit and loss statement) is non-negotiable. From evaluating barista workflows and menu complexity to deciding whether to outsource food production, the hosts share practical insights and real-world examples to help shop owners stay lean and profitable. Expect actionable advice, including how to refine your numbers, leverage weekly scorecards, and avoid the pitfalls of overstaffing or inefficiency. Whether you’re a small indie or dreaming of opening your own shop, this episode is a masterclass in running a tighter, smarter coffee business.

 

Minute by Minute:

0:00 Introduction

2:30 Headline: Starbucks major layoffs!

7:27 Starbucks being undercut by smaller shops?

15:02 Make sure you’re looking at your P&Ls

18:01 How much food do you bring in house?

20:26 Why is my labor so high?