Out With The New, In With The Old As Starbucks Rolls Out Big Changes – CoffeeTalk
Starbucks is implementing several changes to its locations in the United States and Canada, as part of CEO Brian Niccol’s efforts to reverse sales and traffic declines at the struggling institution. The chain is bringing back condiment bars after being removed during the Covid-19 pandemic, and baristas will return to hand-writing customers’ names on their cups using Sharpies. These changes are part of Starbucks’ plans to reboot the coffee house vibe that has diminished in recent years.
The return of milk and sugar stations is a small step for Starbucks, but it represents something much bigger for the world’s largest coffee chain. Starbucks acknowledges that it went too far in overloading its baristas with endless ways to prepare drinks. The return of personalizing cups is also a Niccol directive, and Starbucks released a new TV advertisement promoting the personal touches that come with handwritten notes and a slight name update to “Starbucks Coffee Company.”
Free refills on some “for here” orders are expanding to all paying customers, a perk that was once reserved for members of its loyalty program. Starbucks is not letting anyone hang out or use its restrooms without making a purchase, and other tweaks include a ban on panhandling, discrimination, consuming outside alcohol, and vaping. Employees have received training on the new rules.
Starbucks stock is up 7% over the past 12 months, but the company has posted three straight quarters of slumping sales and declining customer visits. Investors will see how Niccol’s turnaround plan is doing when the company releases its next earnings report on Tuesday.
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Source: Coffee Talk