Starbucks plans to roll back production by two days at US coffee plant to cut costs

Starbucks is reducing weekly production by two days in its US roasting and packaging facilities to cut costs.

The coffee chain will adopt a five-day production schedule from seven days at five plants in U.S. starting in January, to cut cost to help pay for upgrades elsewhere. The company found that it no longer needs to operate the plants seven days a week to meet current demand. The plants run 24 hours a day.

The five plants, located in Georgia, South Carolina, Pennsylvania, Nevada and Washington state and produce coffee for Starbucks' stores as well as packaged coffee the company sells at retailers and grocery stores.

CEO Niccol, who will complete a year in the job in less than one month, has been cutting cost and reinvesting in its stores in response to weak demand in the United States for its pricey beverages.

Starbucks is working to bounce back from six straight quarters of same-store sales declines.

Last week, Starbucks capped off a 2% pay raise [https://seekingalpha.com/news/4486710-starbucks-fires-off-a-2-pay-raise-to-all-salaried-employees] to all salaried employees.

Earlier in January, the company had fired corporate staff as part of a turnaround.

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