Search Here

Starbucks is trimming its weekly production schedule at five US coffee roasting and packaging plants starting in January 2026.

The move is part of a larger effort to reduce costs and reinvest in store improvements, according to people familiar with the matter.

The five facilities — located in Georgia, South Carolina, Pennsylvania, Nevada, and Washington — currently operate seven days a week, 24 hours a day. Under the new plan, they will shift to a five-day workweek.

The change comes as Starbucks evaluates how to manage its operations amid slowing demand for its higher-priced drinks in the US market.

The company believes it no longer needs a full seven-day schedule to meet current production needs.

The affected plants supply coffee for Starbucks cafés and also package products sold in grocery stores and other retail locations. Starbucks has not disclosed how many workers will be affected by the shift, and the company has not issued an official comment on the changes.

Earlier this month, Starbucks also placed a cap on annual raises for North American salaried employees, limiting increases to 2%, Reuters said.

The raise cap and plant schedule changes are both part of a larger cost-reduction strategy being led by CEO Brian Niccol.

Digital Upgrades Coming as Starbucks Aims to Win Back Customers

In its July earnings call, Chief Financial Officer Cathy Smith stated that the company is focused on "driving a healthier and more efficient cost structure" to support ongoing investments.

According to Bloomberg, these investments include $500 million aimed at improving customer experience by hiring more store employees, redesigning cafés, and enhancing digital ordering.

"To offset these investments, we are focusing on cutting operating expenses," Smith said during the call.

The company has already seen six straight quarters of declining same-store sales in the U.S. Analysts say modest growth may return in the current quarter, though expectations have been lowered.

Despite these changes, Starbucks continues to operate globally with manufacturing hubs outside the US in India, the Netherlands, and China.

The company buys about 3% of the world's coffee annually and partners with Nestlé to distribute Starbucks-branded packaged products through supermarkets.

Earlier this year, Starbucks laid off around 1,100 corporate employees. Those layoffs did not impact store staff or workers at its manufacturing plants.

As of September 2024, Starbucks employed roughly 211,000 people in the U.S., with more than 95% working inside stores.