The company, which operates 650-plus company-owned restaurants, spelled out those priorities in its fourth quarter/full-year earnings release. “I am confident that our strategic priorities around food, experience and people will sustain this momentum and drive long-term value creation,” said Deno, who replaced Julie Masino, architect of the ill-fated makeover, about six weeks ago. In a conference call with analysts who follow the chain’s stock, Deno also said he wants to make the shops easier to navigate through simpler product layouts, wider aisles and clearer sight lines, FSR.com reported.
* McDonald’s Corp. (Chicago) said one of the next steps in its ongoing >Next growth blueprint includes pumping $8.5 billion to franchisees for restaurant upgrades. “To accelerate restaurant modernization, technology deployment and operational improvements, McDonald’s plans to provide approximately $8.5 billion in total NEXT partnering support through 2036, including approximately $5 billion through 2030, through a combination of rent relief and capital support,” the fast-food chain said in a news release put out during its annual investor day. The company has 46,000-plus locations in more 100 countries, and about 95% of those restaurants are operated by franchisees.
* Starbucks Corp. (Seattle) said it is closing 250 more underperforming stores in North America while continuing to upgrade the look and feel of the rest of its coffeehouses. The java giant revealed the closing plans in an e-mail to its employees from COO Mike Grams about the chain’s ongoing “Back to Starbucks” campaign that was launched two years ago this month by then-new Chairman CEO Brian Niccol. “We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams wrote. “As a result, we will close approximately 250 coffeehouses later this week. This represents approximately 1% of our more than 18,000 North America coffeehouses.”
A day before Grams’ letter, Starbucks SVP Global Designs & Concepts Dawn Clark released a similar missive on another aspect of the chain’s revitalization efforts: new looks for its cafes. Thus far the chain has redesigned more than 1000 Starbucks coffeehouses across the U.S. and Canada, and more than 500 more are slated to go through that process by the end of this year. “Our coffeehouse uplifts are bringing softer seating, textures, beautiful artwork, greenery and local design touches.” Clark wrote.