Starbucks in Transition: CEO Brian Niccol Drives Reforms Forward

For 51 days, Brian Niccol has been running the operations at Starbucks, facing a variety of challenges that he is tackling decisively. Issues such as high prices, an overloaded menu, and service speed are at the top of his agenda. During visits to key regions like New York, Dallas, and Chicago, Niccol engaged in conversations with baristas and realized that the chain has scarcely listened to its customers' voices in recent years. His goal is to rekindle customer growth for the 53-year-old company following disappointing quarterly results. While the stock value of Starbucks has risen only 4% since the beginning of the year, the S&P 500 recorded an increase of 23%. Niccol's ambitious goal is to ensure that customers can enjoy a satisfactory experience within four minutes. To achieve this, all stores are to reintroduce condiment bars by 2025, after these were moved behind the counters during the pandemic. Pricing is also a key focus. In the future, there will be no additional charge for plant-based milk alternatives, a point Niccol has identified as an important customer demand. Price increases are to be paused initially, as they could weaken the value-for-money proposition. In the long term, a price adjustment might be necessary, depending on inflation. Additionally, there are plans to simplify the menu to refocus on the core business. As such, no new iced coffee energy drinks that do not fit the Starbucks brand universe will be offered. Some products do not align with the desired “four-minute café experience” or are unsuitable for mobile orders. The coffee series Oleato, developed by founder Howard Schultz and infused with olive oil, will also be removed from the menu in the US. However, one highlight remains: the boba-like pearls, which will stay in the range due to the trend towards textured beverages.