Starbucks Accelerates Green Apron Service, Invests $0.5B in Labor for FY26

Starbucks plans to accelerate its Green Apron Service to all US stores by mid-August, a $0.5 billion labor investment for FY26. CEO Brian R. Niccol stated that "Back to Starbucks is the right plan" and emphasized progress in transforming the business and culture. The company is ahead of expectations and moving quickly to establish a seamless customer experience.

Starbucks has announced plans to accelerate the rollout of its Green Apron Service to all US stores by mid-August, a significant labor investment of $0.5 billion for the fiscal year 2026. CEO Brian R. Niccol has expressed confidence in the "Back to Starbucks" strategy, emphasizing progress in transforming the company's business and culture [1].

The Green Apron Service, introduced by Niccol, aims to differentiate Starbucks from competitors by focusing on hospitality and operational efficiency. The service model includes reducing minimum staffing hours per store, implementing a "smart queue" to expedite orders, and enhancing personalized interactions between guests and employees. Additionally, the company is introducing new menu items to further enhance the customer experience [1].

Niccol's strategy is part of a broader effort to reverse a long period of declining sales and customer traffic. The company has faced challenges such as inflation and operational mismanagement, but Niccol believes that the right programs and strategy can help Starbucks bounce back [1].

To support the Green Apron Service, Starbucks is also investing in its physical locations. The company plans to complete 1,000 store uplifts by the end of 2026, with each store receiving a targeted investment of $150,000. These uplifts aim to make stores more welcoming and maintain service speed and customer experience KPIs. Additionally, Starbucks will phase out its mobile order and pickup-only concept, which the company found to be overly transactional and lacking in warmth and human connection [2].

Niccol has a proven track record of corporate turnarounds, having previously led Chipotle and Taco Bell through significant transformations. His experience is expected to help Starbucks overcome its current challenges and establish a seamless customer experience [1].

References:
[1] https://www.cnbc.com/2025/07/31/starbucks-ceo-brian-niccol-my-green-apron-plan-to-bounce-back.html
[2] https://www.retailtouchpoints.com/features/news-briefs/starbucks-to-complete-1000-store-uplifts-in-2026-plans-to-phase-out-pickup-only-locations