Sep 12, 2024, 7:40 PM
Sep 10, 2024, 12:00 AM

Starbucks CEO aims to revive coffeehouse culture and service

Highlights
  • Brian Niccol officially started as CEO of Starbucks on Monday, focusing on improving service and store experiences.
  • Sales have declined this year due to reduced U.S. store traffic and increased competition, prompting a need for change.
  • Niccol's strategy includes enhancing barista support, redesigning store layouts, and emphasizing coffee quality to revive the brand.
Story

Brian Niccol, the new CEO of Starbucks, officially began his role on Monday, focusing on revitalizing the coffeehouse experience. He identified a disconnect between the brand's core values and current operations, noting that customer and employee feedback indicated a decline in service quality. Sales have dropped this year due to reduced foot traffic in U.S. stores, increased competition in China, and boycotts in the Middle East. Niccol emphasized the need for improved service, especially during peak morning hours, to enhance customer satisfaction. To address these challenges, Niccol plans to ensure that baristas have the necessary tools and time to prepare drinks, aiming to create a more personal connection with customers. He acknowledged that the rise of mobile, drive-thru, and delivery orders, which now account for 75% of transactions, has complicated store operations and increased wait times. Niccol proposed redesigning store layouts to differentiate between to-go orders and in-store experiences, making the environment more inviting for customers who wish to linger. Additionally, he stressed the importance of delivering high-quality coffee and food consistently, particularly for morning customers. Niccol's approach includes a renewed focus on Starbucks' coffee expertise, which he believes has been overshadowed by recent product expansions like bubble tea and energy drinks. He intends to spend his first 100 days engaging with employees and suppliers to better understand the brand's challenges and opportunities. Overall, Niccol's leadership aims to restore the essence of Starbucks as a community gathering place while enhancing operational efficiency and customer experience.

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