Starbucks CEO Brian Niccol has shared his vision for revitalizing the brand, focusing on faster service and creating more inviting cafés. In his first earnings call since joining last month, Niccol stated, “It is clear we need to fundamentally change our strategy to win back customers. My experience tells me that when we return to our core identity and consistently deliver a great experience, our customers will come back.”
Starbucks reported a 6% drop in U.S. comparable sales and a 14% decline in China, while pausing its financial guidance for the upcoming fiscal year due to business challenges and leadership transition.
One key area Niccol plans to tackle is reducing wait times for in-store orders. He emphasized a “full-court press on solving four minutes” and announced plans to reintroduce condiment bars at company-owned locations by early 2025, allowing brewed coffee orders to bypass the queue for complex drinks. Starbucks will also remove the extra charge for non-dairy milk, the second-most popular customization after an extra espresso shot.
Niccol’s vision includes revamping the atmosphere of Starbucks cafés, aiming to “reclaim the third place” with comfortable seating, ceramic mugs, and handwritten names on cups to add a personal touch. Additional changes ahead include requiring corporate employees to work in-office at least three days per week and discontinuing the company’s olive-oil-infused coffee options.
Since stepping into his role in September, Niccol has focused on streamlining U.S. operations by dialing back on promotions, drive-thru, and mobile ordering. He hinted at introducing “guardrails” on mobile ordering to prevent overly complicated customizations that may compromise quality.
Niccol acknowledged that Starbucks faces economic pressures and increased competition from local brands in China. He shared that he plans to visit China to gain a deeper understanding of the market and its specific needs.
Finally, Niccol expressed confidence in Starbucks’ employees, stating, “When you start with that kind of foundation, you know you’re able to put in the right programs so that we can get the business turned around.”
