Starbucks has hired assistant store managers at 62 select locations in California, Illinois and Texas as part of a pilot program to double leadership inside the company’s coffee shops.
The Seattle-based coffee giant in most cases promoted existing employees from the positions. Starbucks eventually plans to have at least one assistant store manager, or ASM, in each of its locations in the U.S. and Canada next year.
Sara Kelly, chief partner officer with Starbucks, said in a message to employees that the change is “a meaningful investment in the heart of our business: our coffeehouses and the partners who run them.”
The move is designed to increase in-store leadership, providing relief for store managers while developing more company leaders. Starbucks believes the roles will stabilize leadership, improve productivity along with store profitability. It will also provide a more clear career path for hourly workers, which the company calls “partners.”
“When we have strong, stable leaders throughout our operating hours, everything gets better—partner experience, customer connection and coffeehouse performance,” Kelly said. “ASMs will give coffeehouse leaders more support to run the business, coach their teams and create great experiences for partners and customers. And when the team feels supported, they can thrive.”
She said that, according to industry data, “engaged teams are 17% more productive and 21% more profitable. And she said that inside Starbucks more stable leadership delivers “stronger results across the board.”
For Starbucks, the addition of assistant store managers is part of a broader effort to improve operations inside its shops.
The company earlier this year increased hourly workers inside stores in a bid to improve service and speed. Managers are able to determine the times of day to add the employees. Starbucks also plans to remodel locations, adding more seats to make them friendlier for in-store customers. The chain is also working on technology to improve the experience for mobile order customers.
At the same time, however, the company has laid off about 2,000 corporate workers to offset the investments. It also closed hundreds of stores that cannot be upgraded to the chain’s new image.
It all comes as Starbucks tries to work its way out of one of the worst sales slumps in company history. U.S. same-store sales declined in each of the past six quarters.
UPDATE: This story has been updated to reflect that the managers have been hired.
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