New Starbucks CEO Lays Into Overwhelming Menus, Inconsistent Product, And Long, Hectic Waits – CoffeeTalk

Starbucks CEO Brian Niccol has pledged to restore the company’s former glory, focusing on returning to its roots of offering tailor-made, high-quality coffee. He believes that the 39,000+ Starbucks stores worldwide need to return to their roots, offering a welcoming coffeehouse where people gather and enjoy the finest coffee, handcrafted by skilled baristas.

Niccol’s first day at the company is devoted to addressing fundamental problems and giving a brief overview of its strategic direction. As Starbucks’ fourth CEO in two years, Niccol takes over at a turbulent time for the chain, having cut the company’s financial targets three times in less than a year and presided over two straight quarters during which same-store sales fell. To prop up sales, Starbucks introduced its popular, autumn-themed pumpkin spice latte as early as August, a move many viewed as a sign of desperation.

Niccol’s initial attention will be devoted to fixing problems in its U.S. stores, a concern for founder Howard Schultz, since it makes up the bulk of its global profits. In Starbucks’ home market, consumers are typically spoiled for choice and often have several convenient coffee chains along their daily commute. A brand that charges premium prices needs to differentiate itself through its experience, and lately, Starbucks customers have been turning their backs on the chain in frustration.

Niccol wants consumers to associate the chain with emotions of joy and human connection, along with great coffee, and sees plenty of room for improvement. He believes that in some places, especially in the U.S., we aren’t always delivering, and that there is plenty of room for improvement.

In addition to fixing issues in the U.S., Starbucks has also strayed from its coffee roots, focusing more and more on caffeinated soft drinks, where it can often earn higher margins. The Seattle-based chain must win back customers lost after it sued unionized employees who called for solidarity with Palestinians caught in the crossfire of Israel’s war with Hamas.

With shares now no higher than they were five years ago, the board booted Laxman Narasimhan out of the company in August, ending his tenure after fewer than 18 months.

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