Nor backing Down
Starbucks has announced that it will permanently close the two remaining Ithaca locations by May 26, yet it cant be honest as to why they are closing.
A Starbucks representative denied that the closures were carried out in retaliation for the unionization effort, according to a statement made to the Ithaca Voice. This announcement comes a year after the Ithaca Starbucks employees successfully voted to unionize, and the College town location was closed. On May 5, Andrew Sugar, the district manager for both Ithaca locations, informed employees on a shift, including Evan Sunshine '24, about the stores' closure. Those not on shift received a brief voicemail with no caller ID. Sunshine led the initial 2022 collective bargaining negotiations. Sunshine claimed that Starbucks' explanation for closing the outlets to the employees was based on financial and operational requirements; however, he doubted the reasons. When the College Avenue shop was closed, Sunshine, who had previously worked there, remarked that it was "the store with the most substantial quantity of revenue." Most consumers have moved to the Commons and Meadow stores in various ways, resulting in higher revenues for both businesses than in past years, especially since the Commons store recently obtained a bus stop. The Sun could not verify the sales at the Ithaca sites on its own. Sunshine further claimed that on the same day as the announcement, a support manager—a role only available at union stores like Ithaca's—had spoken to a worker at the E. Seneca Street site about the stores' shutdown and blamed it on the unionization campaign. Sunshine alleged that the support manager "told one of the employees that the business was going to close because of the unionization campaign."
Dont believe the hype
The SG CEO Neman predicted that the automated kitchen design would result in significant labor savings and there is not time line for when.
Last November the CEO said "Production or assembly makes up around half of our variable work in the restaurant. And the majority of that goes to this Infinite Kitchen." Now on the 1Q23 earnings call last week we have an update that the automated kitchen to constructed in a renovated unit will serve as a test for Sweetgreen's capacity to incorporate the technology into retrofitted outlets. Not surprisingly on the Infinite Kitchen's technical aspects to how it will benefit company he provided relatively little information. According to Neman, "We think this new idea fueled by automation unlocks efficiency that will enable us to grow more rapidly and have larger profit margins." The company need to get RLM in the 22-23% range for this company to be profitable and if this is part of the strategy don't hold your breath.
NEW CFO (BOWL)
BOWL appoints Bobby Lavan as CFO. Brett Parker, Bowlero's long-term Vice Chairman, President and CFO, will remain Vice Chairman and President of Bowlero. Mr. Lavan will join the company on May 11, 2023, as CFO designate, and is expected to assume the role of CFO on May 18, the day after the company plans to file its quarterly earnings.
