Rudolph Angler Starbucks CEO Brian Niccol has unveiled his vision for revitalizing the brand, focusing on faster service, enhanced café ambiance, and a return to Starbucks’ core identity to win back customers.
“It’s clear we need a fundamental strategy shift to bring customers back,” Niccol said on Wednesday’s earnings call, his first since taking the helm last month. “When we focus on our core identity and deliver a consistently great experience, customers will return.”
The company recently shared quarterly numbers showing a 6% decline in U.S. comparable sales and a 14% drop in China. Starbucks also suspended its guidance for the upcoming fiscal year due to the CEO transition and ongoing business challenges.
Niccol emphasized the need for faster in-store service. “I’m putting a full-court press on solving four-minute wait times,” he noted. To address this, Starbucks plans to reintroduce condiment bars in company-owned stores by early 2025, allowing brewed coffee orders to bypass the line of complex drinks.
Additionally, Starbucks will eliminate extra charges for non-dairy milk, the second-most popular drink modification after an extra espresso shot. Niccol also intends to reclaim the brand’s “third place” atmosphere, focusing on comfortable seating, ceramic mugs, and adding personal touches like baristas writing on cups with Sharpies.
Other initiatives include requiring corporate employees to work at the office three days a week and phasing out the chain’s olive-oil-infused coffee offerings. Since assuming leadership, Niccol has worked to simplify Starbucks’ U.S. menu, easing away from heavy promotions, drive-thru, and mobile ordering. He suggested that “guardrails” are in development to prevent overly complex mobile orders that may not optimize the customer experience.
Niccol briefly addressed Starbucks’ challenges in China, citing economic slowdown and heightened competition from local brands. “Before making any changes in China, I need to spend time there to understand our operations and the market,” he said.
Niccol expressed confidence in Starbucks employees, praising their passion for coffee, the company, and its customers. “With this kind of foundation, we can implement the right programs to turn the business around,” he said.