New Starbucks CEO Brian Niccol, just 51 days into his role, is taking swift action to address high prices, menu complexity, and service speed issues that have impacted the brand’s reputation. Visiting major markets such as New York, Dallas, and Chicago, Niccol is focusing on rejuvenating Starbucks’ customer experience while boosting sales growth after another lackluster quarter.
Price Pause and Simplified Menu
Niccol announced that Starbucks will halt price hikes this year to improve its value perception, a response to customer concerns about affordability. The chain will also eliminate its surcharge on non-dairy milk options, a significant move for customers who prefer dairy alternatives. While long-term pricing may see modest adjustments depending on inflation, Niccol is pausing further increases for now, with an aim to keep annual hikes between 1% and 2%.
In addition to pricing adjustments, Starbucks will simplify its menu by removing less popular items like the recently launched iced energy drinks and the Oleato olive-oil infused coffee line, introduced by former CEO Howard Schultz. “We shouldn’t be cracking cans behind the counter,” Niccol said, emphasizing his goal to streamline offerings around Starbucks’ core coffee products.
One recent addition will remain: boba-like pearls, which cater to the growing demand for textured beverages. However, new product launches will become less frequent as Starbucks focuses on optimizing its existing menu and assessing its food selection.
A Focus on Speed and Service
A key element of Niccol’s strategy is enhancing the Starbucks in-store experience by reducing wait times to four minutes or less. This includes reintroducing condiment bars across all U.S. locations by 2025, after they were moved behind counters during the pandemic. The CEO’s focus on operational efficiency is driven by feedback from both customers and employees, with the goal of streamlining order processes and improving flow.
To create a consistent experience across cafes and mobile orders, Starbucks will concentrate on items that align with its “four-minute cafe experience.” By focusing on efficient, quick-serve items, Niccol hopes to balance Starbucks’ menu with streamlined operations that deliver a reliable experience to every customer.
Employee Growth and Retention
Niccol, known for his success at Chipotle, is also prioritizing career development within Starbucks to strengthen employee retention. He aims to increase internal promotions, with the goal of filling 90% of managerial roles from within the company. This strategy aligns with his belief that retaining experienced employees leads to better operational efficiency and customer satisfaction.
In the coming months, Starbucks plans to slow new store openings, allowing the company to focus on optimizing current stores and enhancing the barista experience. Niccol is setting a clear roadmap for Starbucks employees, offering paths for advancement and growth within the company.
By addressing customer concerns and reinforcing his vision for a streamlined, affordable, and efficient Starbucks, Niccol is positioning the 53-year-old coffee giant for a refresh that targets key aspects of the in-store experience and service quality.
