New Starbucks CEO outlines plan to refocus coffee brand
Add Axios as your preferred source to
see more of our stories on Google.
Starbucks' new CEO started Sept. 9, 2024. (Photo: Smith Collection/Gado/Getty Images
New Starbucks CEO Brian Niccol is outlining a plan to bring the company back to its roots, acknowledging that the chain has lost its way.
Why it matters: The former Chipotle boss is under pressure to deliver a turnaround at Starbucks with the coffee giant reeling from a slowdown in sales and facing pressure from activist investors.
- Long wait times and supply chain issues have been dogging Starbucks in the post-Howard Schultz era.
Driving the news: Niccol released a letter Tuesday outlining his plans for Starbucks in his first 100 days and detailing what he views as the company's missteps before he joined.
- The letter comes during his first week as chairman and CEO after leaving from Chipotle and previously leading Taco Bell. He replaces Laxman Narasimhan, who had a short tenure though he was handpicked by Schultz.
- "Today, I'm making a commitment: We're getting back to Starbucks," Niccol wrote Tuesday in a letter to employees, customers and stakeholders.
- "We're refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas," he wrote.
- "In some places — especially in the U.S. — we aren't always delivering," he said. "It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic."
Zoom in: Hailed by restaurant analysts as an industry savant, Niccol led the Chipotle to a sales rebound after a crisis stemming from an outbreak of food-borne illnesses.
- He implemented new safety protocols, modernized the chain's ordering, introduced new ingredients and opened new locations.
Starbucks turnaround plan
The intrigue: Niccol outlined four key areas to focus on in U.S. Starbucks locations, which he said "I need to focus my time initially."
- Empowering baristas to better serve customers on a personal level.
- Focusing on improving morning service and "on time, every time."
- "Elevating the in-store experience" by "ensuring our spaces reflect the sights, smells and sounds that define Starbucks" and investing in "comfortable seating, thoughtful design and a clear distinction between 'to-go' and 'for-here' service."
- "Telling our story" — likely in the form of a marketing campaign — by "reminding people of our unmatched coffee expertise, our role in communities and the special experience that only Starbucks can provide."
Zoom out: Niccol also said the company will make "investments in technology that enhance the partner and customer experience, improve our supply chain and evolve our app and mobile ordering platform."
More from Axios:
