TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Starbucks’ menu is shrinking.
Category
🗞
NewsTranscript
00:00I'm Conway Giddens reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:05Tech stocks are in the red this Wednesday for the second time this week.
00:08The mood, however, could change as several big tech names are due to release quarterly
00:13results.
00:14Outside of tech, Kohl's is slashing its corporate workforce by 10 percent.
00:19The job cuts are part of a turnaround effort that includes plans to shut 27 low-performing
00:25stores.
00:26Sticking with retail turnaround plans, Starbucks is making some changes under new CEO Brian
00:32Nickel, which it hopes will bring back some deserted customers.
00:37At the top of the list, slimming down its menu.
00:40Nickel told investors that the menu is going to get about 30 percent smaller.
00:44The downsize will impact both food and drinks.
00:47In addition to fewer menu items, Starbucks is investing $2.5 billion in a system aimed
00:53at helping baristas take fewer steps to make each drink.
00:57According to Starbucks, the new system will include, quote, a custom ice dispenser, milk
01:02dispensing system, and new faster blenders, all located within reach of a barista.
01:09Forty percent of Starbucks locations are expected to have that new system in place by 2026.
01:14And those aren't the only changes.
01:17Starbucks is bringing back the beloved condiment bar, which it ditched during pandemic times
01:22for reasons we can all understand.
01:24But now, with health concerns less of an issue, the milk, creamers, sugars, and spices we
01:29back at customers' reach.
01:32There's also a new code of conduct which could impact Starbucks' long-held image as a place
01:36to sit back, sip, and chill.
01:40That image, however, has not been translating to more business at the cash register lately.
01:45Sales at Starbucks have been down for four straight quarters.
01:49That's a losing streak.
01:50Starbucks hopes to stop with all the changes.
01:53That'll do it for your daily briefing from the New York Stock Exchange.
01:56I'm Conway Gittens with The Street.