Brian Niccol, the new chairman and CEO of Starbucks, announced on Tuesday his intentions to focus on enhancing service, especially during the morning rush, and reestablishing Starbucks outlets as community gathering spots. In an open letter on the Seattle-based coffee company’s website, Niccol acknowledged that while Starbucks remains a beloved brand, recent conversations with employees and customers revealed a shared feeling that the company has strayed from its core values.
Sales at Starbucks have suffered this year due to decreased U.S. store traffic, increasing competition in China, and boycotts in the Middle East. Niccol believes that improving the in-store experience for both baristas and customers is key to reversing this trend. He pointed out that although many customers still experience the “magic” of Starbucks daily, some locations, particularly in the U.S., do not always deliver the expected level of service. He noted that interactions can feel transactional, menus can appear overwhelming, product quality can be inconsistent, wait times too long, and handoffs too chaotic—all areas that present opportunities for improvement.
Having formerly served as CEO of Chipotle, Niccol emphasized that Starbucks, a company founded on a passion for high-quality coffee, needs to ensure that baristas are equipped with the proper tools and time to craft drinks and personally deliver them to customers. The rise of different ordering channels, such as mobile, drive-thru, and delivery—which now account for 75% of orders—has complicated store operations and contributed to longer wait times. Niccol suggested that store designs should adapt to these changes by clearly distinguishing between “to-go” orders and in-store service, making stores more inviting with comfortable seating for customers who wish to linger.
Furthermore, Niccol stressed the importance of meeting the needs of morning customers by delivering outstanding drinks and food, promptly and consistently. He reiterated that coffee is the heart of Starbucks, and marketing efforts should remind customers of the company’s coffee expertise. This may have been a subtle critique of recent product introductions at Starbucks, such as bubble tea and energy drinks.
Niccol concluded by stating his plans to spend his first 100 days visiting Starbucks stores, support centers, and meeting with suppliers, as he works to steer the company back to its core values and enhance the overall customer experience.
