New Starbucks CEO Aims to Reverse Sales Slump by Returning to Coffee Shop Setup

Starbucks' new CEO Brian Niccol urges to bring the company back to its core values, focusing on creating a more welcoming and community-centered coffee shop experience.

The company is grappling with declining sales as it shifts from its traditional sit-down coffee shop model to a more mobile-focused experience.

Starbucks' CEO Urges to Fix Morning Services, In-Store Experience

Niccol, who took on the role recently, addressed employees, customers, and stakeholders through an open letter, expressing his vision to restore Starbucks' foundational essence. He emphasized that Starbucks has strayed from its roots, and he aims to bring back the sense of community that once defined Starbucks.

According to NBC News, Niccol plans to enhance the in-store experience, including better seating arrangements, a clear distinction between "to-go" and "for-here" services, and a focus on the sights, smells, and sounds that make Starbucks a special place.

One of Niccol's biggest priorities is fixing Starbucks' morning service. Many customers begin their day with Starbucks, but not long waits, inconsistent product quality, and chaotic handoffs have made the experience feel transactional rather than special.

Additionally, Niccol wants to reestablish the brand's identity as a gathering place. Starbucks, of many, has always been more than a coffee shop; it's a space where people can connect and find joy in shared experiences.

Niccol plans to bring back that sense of connection by making Starbucks cafes more community-focused, providing comfortable spaces for people to meet, work, or simply enjoy a good cup of coffee.

Starbucks has faced criticism in recent years, especially in the US, where its focus on mobile orders and drive-thru services has shifted the customer experience. Mobile and drive-thru orders now make up over 70% of sales at the company's 9,500 US stores. While convenient, this shift has contributed to the loss of the in-store community atmosphere that once defined the brand.

Brian Niccol Reveals Tech Investments, Barrista Support

Niccol is committed to addressing these challenges head-on. He plans to invest in technology that enhances both the customer and partner (employee) experience. This includes improving the mobile app and streamlining the supply chain to ensure smoother operations.

According to CNN, the company also plans to invest in its barristas, providing more opportunities for growth and leadership within the company.

Niccol also recognized that Starbucks is a global brand. The company operates in 87 markets, and he plans to spend time learning from its international teams, especially in regions like china, where Starbucks faces intense competition and challenges from the aftermath of the COVID-19 pandemic.

Starbucks has seen a decline in sales in the past two quarters, and Niccol's appointment comes at a critical time. Having previously turned around struggling brands like Chipotle and Taco Bell, Niccol is no stranger to revitalizing businesses.

However, his role at Starbucks presents a new challenge, including restoring the company's identity as a beloved community coffee shop while meeting the demands of a rapidly changing market.