Starbucks is set to resume union negotiations as it confronts issues at its stores

When Starbucks and its baristas union resume contract bargaining this week, workers may have renewed momentum at their backs — courtesy of the company's own CEO.

The coffee giant last month found itself reporting an objectively challenging quarter. U.S. same-store sales fell 3% and traffic dropped 7%. As a result, the company cut its 2024 forecast.

CEO Laxman Narasimhan admitted Starbucks was seeing a more cautious consumer when it came to spending, but also mentioned the need to make improvements to stores as the company saw troubling trends. Starbucks reported rates of incomplete mobile app orders in the mid-teens and said occasional customers came in less.

Narasimhan, in prepared remarks to Wall Street analysts, cited some of the challenges that union workers have been highlighting in their bid for better working conditions.

"Specifically in our U.S. stores, we're focused on creating a more stable environment for partners through investments in equipment innovation, process improvements, staffing, scheduling and waste reduction, all things our partners value and prioritize creating a more satisfying work environment in our stores while de-risking our business," Narasimhan said on a call with analysts.

He added in an interview with CNBC's "Squawk on the Street" that throughput has improved, and said the company's action plan will continue to build on that momentum with improvements to stores and better communication of value.

"We have improved speed of service quarter over quarter. If you look at the processes that we are rolling out, particularly around peak, what we are finding is that we have opportunities to improve that even further with changes in processes and tools that we provide to partners at peak," Narasimhan