Starbucks is planning to use zero-based budgeting starting during its next fiscal year.
The strategy, which includes moves like making all senior execs fly coach class even over long distances, did lower costs and improve the companies’ margins. But in some cases, the spending cuts were so severe that it made it tough for employees to do their jobs, Business Insider reported in 2021.
One employee, who had recently left Kraft Heinz, told BI at the time that she could only spend $5 annually on office supplies. She also had to bring in her own Keurig pods from home since the company, which makes Maxwell House coffee, provided no coffee in the office break room.
Other Kraft Heinz employees told BI that strict spending controls hampered the development of new products and ultimately made it less competitive.
didn’t some starbucks exec recently commute from his home in california, to seattle, like 3-4 times a week, via company jet?
This sounds like a CEO that doesn’t know what the hell they are doing.
