Brian Niccol Discusses How Luckin Coffee Influences His “Back To Starbucks” Plan – CoffeeTalk

Starbucks CEO Brian Niccol has praised Chinese competitor Luckin Coffee, which opened its first US stores earlier this year. Niccol admires Luckin’s unique flavors and low prices, which are made possible through an app-based ordering process. He believes that competitors always “make you better” in product innovation. However, Luckin’s digital business model contrasts with Starbucks’ focus on in-person experiences. In July, Starbucks announced it was phasing out its mobile order-only stores and focusing on enhancing physical comfort.

Niccol also noted that Starbucks is experiencing a “nice recovery” in China, with different flavors and store locations. In July, the company announced it was seeking a local partner to help run its Chinese stores. In an earnings call, Niccol said he expects “thousands of more Starbucks in China.” Starbucks has lowered the price of some drinks in China this summer, aligning with Luckin.

Niccol has been working on his “Back to Starbucks” campaign for just over a year and has implemented new strategies to tackle issues such as long waits, glitchy apps, staffing issues, and declining sales. Year-over-year, the company’s stock has fallen more than 12%.

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