The surprising old-fashioned perk coming back to Starbucks after new CEO went undercover
Starbucks’ new CEO Brian Niccol is on a mission to change the coffee giant’s fortunes, starting with a retro benefit.
Niccol went undercover at Starbucks locations in Los Angeles in recent weeks to observe problems firsthand. The Wall Street Journal reports this.
The former Chipotle boss was brought in after nine months of declining sales this year – after years of growth. Customers are tired of high prices and long lines.
One idea he is considering is reintroducing free newspapers for customers enjoying their coffee in the store.
Other planned changes include bringing back Sharpie pens for handwritten notes on customer cups and working on speeding up simple orders.
During his undercover visits, Niccol was surprised by how long it took to get his basic Americano, as he watched baristas being slowed down by complex orders from other customers.
Brian Niccol took over as CEO in September after the board ousted his predecessor
“Sometimes you just want a quick cup of coffee,” Niccol told the Journal.
To increase speed, Nicol announced last week that self-serve spice bars, where customers can add their own extra milk and sugars, will return to locations next year.
Niccol took over the company in September.
After years of solid growth, sales are down for each of the three quarters in 2024.
In the most recent period from July to September, Starbucks sales fell by six percent.
Customers with little money are increasingly put off by high prices and long waiting times for drinks.
“We’re in a bit of a ditch, but that doesn’t mean we can’t get out of that ditch quickly, effectively and smartly,” the CEO told the company during an internal meeting following the poor earnings report. in October.
Niccol replaced the company’s last CEO, Laxman Narasimhan, who was ousted by the board in August after just 17 months in the role.
Niccol is highly regarded on Wall Street for turning around Chipotle’s fortunes as CEO, and Starbucks shares have risen 26 percent since he took over.
So far, Niccol has announced a number of measures that are popular with Starbucks consumers.
Starbucks has suffered three quarters in a row of declining sales this year
Customers have been put off by Starbucks’ high prices and long waits for drinks
Last week, the chain announced that it would stop charging extra for dairy alternatives in its drinks.
Previously, surcharges for options like almond and oat milk were as high as 80 cents in some locations. The new policy, which takes effect today, November 7, is in response to years of customer complaints.
The change follows Starbucks’ decision last month to scale back certain promotions and discounts as part of a strategy to strengthen its finances and position itself as a premium brand.
However, a recent report shows that high prices have deterred some coffee consumers, who are now cutting back to save money.