Starbucks CEO Brian Niccol has outlined a comprehensive strategy to revitalize the coffee chain’s U.S. business as it navigates three straight quarters of declining sales. With a primary focus on improving service speed and customer experience, Niccol presented his vision during Starbucks’ recent earnings call, emphasizing efficiency and connection as key areas of improvement.
A significant aspect of Niccol’s plan centers on reducing order times, with a goal of delivering customized drinks within four minutes. Currently, about half of Starbucks’ orders meet this target. Niccol shared that streamlining operations is essential, so Starbucks will scale back new store openings and renovations in 2025 to reallocate capital towards these core improvements.
One change aims to enhance the mobile order experience, which accounts for over 30% of U.S. transactions. Niccol seeks to better organize mobile pickup areas and adjust app functionalities for smoother, more accurate pickups. Additionally, Starbucks plans to limit excessive customization options, enabling baristas to maintain consistency without overwhelming complexity.
The menu itself is also getting a refresh. Niccol intends to pare down offerings to “fewer, better” items, allowing baristas to work faster and serve consistently. By removing rarely ordered items and focusing on core favorites, Starbucks hopes to improve order speed and service quality.
Another facet of the turnaround strategy focuses on restoring Starbucks’ image as a “third place” – a welcoming space where people can gather outside of work and home. Niccol plans to bring back more personal touches, such as using ceramic mugs for in-store customers and offering Sharpies instead of printed labels. Store designs will also be reviewed, with an eye toward adding cozy seating, warm textures, and comfortable amenities, even in pickup-focused urban locations.
In a move that many customers have anticipated, Starbucks will reintroduce its self-serve condiment bars, which were removed during the COVID-19 pandemic. This change is expected to ease wait times for baristas and give customers more control over their drinks.
Niccol’s marketing strategy includes a shift away from discount-driven promotions. His aim is to appeal to a broader audience beyond Starbucks Rewards members and showcase Starbucks’ coffee quality. As part of this vision, Niccol recruited former Chipotle executive Tressie Lieberman as chief global brand officer to help implement these initiatives.
Perhaps most notably, Starbucks will remove the additional charge for dairy alternatives starting November 7, allowing customers to choose options like oat or almond milk without an extra fee. This shift aligns with the company’s goal of improving its pricing perception, with no planned price increases for North America through the next fiscal year.
Niccol’s changes aim to restore Starbucks’ position as a leader in customer experience and quality, balancing efficiency with the personalized, welcoming atmosphere that defined the brand.
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