New Starbucks boss reveals plan to revive ailing coffee chain after stores were branded unwelcoming and glut of online orders led to lengthy lines
Starbucks newly minted CEO Brian Niccol has vowed to restore the coffee giant to its prime by reforming customers in-store experience.
Starbucks newly minted CEO Brian Niccol has vowed to restore the coffee giant to its prime by reforming customers in-store experience.
Niccol, who took over from Laxman Narasimhan last month, said in an open letter that he wants focus on ensuring the U.S. stores deliver drinks on time and re-establish the coffeehouse culture at its shops.
Formerly the head of Chipotle, Niccol said Starbucks needs to make sure baristas have the proper tools and time to make drinks and personally deliver them to customers.
The coffee companys sales have fallen this year due to weaker U.S. store traffic and other issues including customer complaints of expensive drinks, extreme wait times and long lines.
Many of our customers still experience this magic every day, but in some places - especially in the U.S. - we arent always delivering, said Niccol.
Newly minted Starbucks CEO Brian Niccol (pictured) vowed to re-establish coffeehouse culture and ensure stores deliver drinks and food on time
The coffee companys sales have fallen this year due to weaker U.S. store traffic and other issues including customer complaints
It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.
In the letter the new CEO outlined four areas he intends to focus on during his first 100 days in charge.
He pledged to empower baristas to take better care of customers, promising they will have the tools and time to deliver hand-crafted drinks.
Niccol said the chain would focus on getting the morning right and delivering food and drinks on time.
He added he wants to return Starbucks to a community coffeehouse and turning it into a Third Place for customers to have to spent time out of their homes and work.
Niccols plan is to make stores more inviting with comfortable seating and a clear distinction between sit-in and takeaway service.
Finally he said Starbucks would tell our story again before appearing to take a swipe at protesters by adding: We wont let others define who we are.
A rise in different channels - like mobile, drive thru and delivery, which now make up 75 percent of orders - has made store operations more complex and added to wait times.
A rise in different channels - like mobile, drive thru and delivery, which now make up 75 percent of orders - has contributed to longer wait times
Starbucks closed a beloved New York City location in the East Village (pictured) at the end of July
Store design should acknowledge that change and make a clear distinction between to-go orders and in-store service, and stores should be an inviting place to linger with comfortable seating, he said.
Starbucks suffered a six percent drop in US orders in the fourth fiscal quarter of 2024 as sales tumble.
Around 30 percent of all US orders are done on the app, which has also led to large crowds around the mobile order pickup counters in stores.
The company closed a beloved New York City location in the East Village at the end of July.
We do not take the decision to close stores lightly. Our relationship with our customers is deeply personal, and we are honored to have been their Third Place, a Starbucks spokesperson told WABC.
They went on to say that Starbucks continually evaluates the store portfolio by using various criteria to ensure they are meeting all needs of its customers.
