Starbucks CEO unveils plan to revive US sales slump

Brian Niccol, who became the CEO of Starbucks on September 9, has introduced a comprehensive plan to address the company's declining sales in the U.S. after two consecutive quarters of downturn. He identified that the brand has lost some of its charm, leading to a transactional experience for customers, overwhelming menus, inconsistent product quality, and long wait times. Niccol aims to enhance the morning service, improve the work environment for baristas, and create a more inviting atmosphere for customers, reinforcing Starbucks as a community hub. The company has faced increasing competition and operational challenges, with comparable sales dropping by 3 percent and 2 percent in the second and third fiscal quarters of 2024, respectively. Niccol, previously the CEO of Chipotle, is recognized for revitalizing that brand through cultural and operational enhancements, which led to significant sales growth and stock value increase. To support his strategic overhaul, Niccol announced substantial investments in technology, focusing on upgrading the mobile ordering platform, supply chain, and in-store systems. His initial efforts will concentrate on the U.S. market, but he also plans to extend the revamp to international markets, where he sees significant growth potential. Analysts believe that Niccol's leadership will be crucial for Starbucks, as he has gained the trust of the investment community. His approach is expected to provide the necessary time and resources to turn around the company's fortunes, ultimately aiming to restore the brand's identity and customer experience.