Welcome to the fire
The early exit of Howard Schultz from the coffee chain has not quieted labor disputes between baristas and executives at SBUX.
Starbucks has been grappling with other significant issues like inflation and supply chain problems, so it's too early to say whether unionizing efforts will impact Starbucks's bottom line. Starbucks has been notoriously difficult to organize for years, and Howard Schultz, the former CEO of Starbucks, doesn't believe Starbucks has a union problem. However, it seems that Starbucks, despite what Schultz says, has a union problem, and it's now Laxman's problem.
According to Starbucks Workers United, strikes were planned at more than 100 locations nationwide on Tuesday. The group published a complete list of locations agreeing to strike, urging more stores to join. "Starbucks stores across the country are striking to demand an end to Starbucks' illegal union-busting campaign," the group said. "While the company keeps a metaphorical 'empty chair' for us in the boardroom, we're demanding a real seat at the table!" Outgoing CEO Howard Schultz has long grappled with labor organizers, increasing benefits and highlighting workplace improvements to quiet union demands in the past year. However, hundreds of stores have applied for union recognition since the first store voted to unionize in December 2021. Numerous labor complaints have also been filed with the NLRB over that span. Schultz is set to testify in front of the Senate HELP committee on March 29 after being threatened with a subpoena. Ahead of his testimony, he stepped down ahead of schedule, handing the reins to Laxman Narasimhan on Monday. Narasimhan was originally due to take over as the chain's top executive on April 1.
Turmoil AT PZZA
Today PZZA said Ann Gugino has resigned as a chief financial officer, the latest in a series of leadership changes.
Papa John's said Ms. Gugino, who joined as a chief financial officer in October 2020, would remain with the Louisville, Ky., company until May 31 to assist with the transition of her duties, adding that it has launched a search for a new finance chief. Papa John's said Chris Collins, currently vice president of treasury and tax, will serve as interim principal financial and accounting officer. Mr. Collins, 53 years old, joined the company in April 2021. Papa John's earlier this month said Jeffrey Smith, chief executive of Starboard Value LP, had resigned as chairman as the fund unwound the bulk of the position it took four years ago in the then-struggling pizza chain. C. Max Wetzel, who had been Papa John's executive vice president and chief operating officer, February said he was leaving the company for another post. Mr. Wetzel last week joined Carl's Jr. and Hardee's parent CKE Restaurants Holdings Inc. as chief executive. Papa John's said Ms. Gugino's departure would qualify her for severance benefits consistent with a termination without cause, including a continuation of her base salary for a year and a pro-rata payment of her 2023 annual bonus.
SHAK
The deception of success continues.
Shake Shack (SHAK) said it plans to open 35 restaurants in Canada by 2035, beginning with a flagship location in Toronto in 2024. The restaurant will partner with commercial real estate and investment companies Osmington and Harlo Entertainment to bring Shake Shack to Canada. The financial terms of the partnership between Shake Shack, Osmington, and Harlo Entertainment were not disclosed.
