7 ways that Starbucks CEO Brian Niccol plans to change the coffee chain
StarbucksStarbucks(US:SBUX) CNBC·2024-10-31 12:17

Core Insights - Starbucks is implementing a turnaround strategy to address declining sales, which have fallen for three consecutive quarters, with a focus on improving customer experience and operational efficiency [1][3]. Group 1: Operational Improvements - The company aims to deliver customized drinks to customers in under four minutes, with current transactions meeting this goal only about 50% of the time [2]. - Starbucks plans to end the disorder associated with mobile orders, which account for over 30% of U.S. transactions, by improving app timing accuracy and separating mobile order pickups from in-person orders [3][4]. - The menu will be simplified to focus on "fewer, better" offerings, which should enhance service speed and consistency, as baristas will have fewer drink recipes to memorize [7][8]. Group 2: Customer Experience Enhancements - Starbucks intends to re-establish its locations as "third places" for customers, enhancing the ambiance with personal touches like ceramic mugs and improved seating [9][10]. - The condiment bars will be reinstated, allowing customers to add milk or sugar independently, which is expected to streamline service [13][14]. - The company is increasing barista hours and improving staffing to ensure adequate coverage during peak and off-peak times [16]. Group 3: Marketing Strategy - A new marketing approach will target a broader audience beyond Starbucks Rewards members, emphasizing the quality of Starbucks coffee while reducing discount-driven offers [17][18]. - Starting November 7, Starbucks will eliminate the extra charge for dairy alternatives, potentially saving customers over 10% on drinks, while maintaining stable pricing through the next fiscal year [19][20].

7 ways that Starbucks CEO Brian Niccol plans to change the coffee chain - Reportify