Starbucks’ new CEO, Brian Nicсol, has laid out an ambitious strategy to reverse declining sales over the past three quarters and revitalize the company’s growth. While a full recovery plan is underway, Nicсol is starting with key adjustments aimed at improving customer experience and operational efficiency in the U.S. market.
One core goal in these changes is to serve a personalized drink to each customer in under four minutes—a standard that currently covers only half of Starbucks’ transactions. In addition, the company plans to reduce new store openings and renovations in fiscal 2025, redirecting those resources toward other growth initiatives, according to CFO Rachel Ruggeri.
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Here are the seven primary ways Nicсol is setting up Starbucks for success:
- Streamlining Mobile Ordering and Payments
- To tackle issues with mobile orders cluttering counters and causing delays, Niсcol aims to improve app accuracy, so customers know exactly when their orders are ready. He’s also looking to limit customization options, making mobile orders less complex and easier for baristas to fulfil.
- Simplifying the Menu
- To speed up service and improve quality, Nicсol plans to reduce menu complexity by focusing on fewer but better options. This will allow baristas to make drinks more consistently and limit the items that don’t meet the four-minute preparation goal.
- Enhancing Coffee Shops’ Personal Touch
- As part of a “Back to Starbucks” initiative, Nicсol wants to return to the brand’s roots as a “third place” where customers can relax, work, or socialize. This includes updating shop interiors with more comfortable seating, personal touches like serving drinks in ceramic mugs for in-cafe customers and adding warmth and layers to the design.
- Reinstating Self-Serve Add-On Bars
- Add-on bars with milk and sugar, which were moved behind the counter during the pandemic, will return to their original setup, freeing up barista time and improving customer convenience.
- Ensuring Better Staffing
- Starbucks is increasing average barista hours to reduce turnover and improve consistency. Niсcol also aims to better align staffing with demand by scheduling appropriately for peak and off-peak hours.
- Redefining Marketing
- Nicсol is broadening Starbucks’ marketing focus beyond Starbucks Rewards members to appeal to a wider customer base and showcase the brand’s high coffee quality. Promotions will be less discount-driven to ease the workload on baristas.
- Removing Surcharge on Milk Alternatives
- Starting November 7th, Starbucks will eliminate the surcharge on milk substitutes, allowing customers to save over 10% on some drinks—a change that has been long-requested by customers.
- Through these targeted adjustments, Nicсol is working to bring Starbucks back on track, aiming for improved service times, better staff retention, and an enriched in-store experience. This recovery strategy promises to refine the brand’s offerings and build stronger connections with customers.
