Operations

Starbucks zeroes in on waste reduction

The coffee giant says it loses $500 million each year to waste.

Starbucks is doubling down on its waste-reduction efforts, laying out plans to cut its waste costs by about 15% over the next 18 months.

The coffee company loses about $500 million each year to waste, executives revealed during a recent earnings call.

“That figure will always be significant because product availability combined with our strict product quality requirements inherently result in a certain amount of waste in our business model,” CEO Kevin Johnson said during the call.

Lower-performing units typically have the highest amount of waste, Starbucks executives said.

“We’re going after each one of those stores to improve their waste performance by store–very detailed work,” Starbucks Chief Operating Officer Rosalind Brewer said during the call.

Recently, Starbucks has targeted stores that generate the highest amount of waste as a percentage of sales with training focused on bakery pull-to-thaw processes.

Waste reduction is also being considered as Starbucks develops its Mercato line of grab-and-go salads, sandwiches and snack boxes, Brewer said.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Food

Taco John's travels back to its 'West-Mex' roots to spice up the menu

Behind the Menu: Starting with its new Fiesta sauce and maximizing what’s already stocked in the pantry, the Mexican fast-food chain is driving flavor throughout its platform.

Financing

'The world needs Starbucks:' How Brian Niccol plans to revive the coffee chain

The Starbucks CEO detailed his “Back to Starbucks” plan to 14,000 cheering leaders of the coffee shop giant in Las Vegas this month. And he said the effort is important far beyond the company.

Financing

In the fast-food world, growth is coming from drinks and desserts

The Bottom Line: The highest-growth quick-service chains cannot be found in traditional sectors but among coffee, beverage and dessert brands. What does this say about the restaurant industry?

Trending

More from our partners