Starbucks’ new CEO wants to make Starbucks a coffee shop again
By Nathaniel Meyersohn, CNN
New York (CNN) — Starbucks has been on the decline, with shrinking sales as it moved from a traditional sit-down coffee shop into one where people place orders on their phones and grab a drink from the counter. Its new CEO has a plan to fix it all. And it starts with comfortable chairs.
Brian Niccol, on his second day as Starbucks’ chief, said in a letter to employees and customers that he wants to return Starbucks to its roots as a “community coffeehouse” with comfortable seats, design and a clear distinction between “to-go” and “for-here” service.
“There’s a shared sense that we have drifted from our core,” he said Tuesday. “We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks.”
Niccol is considered the restaurant industry’s Mr. Fix-It, having engineered turnarounds at Chipotle and Taco Bell. He will be Starbucks’ fourth CEO in two years, taking the helm amid a slump in Starbucks’ business and pressure from employees and investors.
Starbucks’ sales have fallen for two straight quarters. Some customers have expressed frustration with high prices, slow pickup orders on Starbucks’ app and lackluster food options. The company, historically considered a progressive employer, has also seen a wave of union organizing at stores stemming from frustration with working conditions, pay and benefits.
Starbucks is transitioning from a primarily brick-and-mortar company to an online-driven business. Mobile app and drive-thru orders make up more than 70% of Starbucks’ sales at its approximately 9,500 company-operated stores in the United States.
He said in the letter that in recent weeks has been visiting stores and talking to employees and customers. He acknowledged in his letter that, in some stores, especially the United States, they can feel “transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic.”
He said Starbucks will focus on “empowering” baristas, ensuring they have “tools and time to craft great drinks.” Some employees have said mobile orders can pile up and overwhelm stores, taxing workers.
Niccol, who lives in Newport Beach, California, has garnered scrutiny for not permanently relocating to Starbucks’ Seattle offices and using a corporate jet to commute back and forth.
According to the company, Niccol will spend time in stores, at headquarters in Seattle and with Starbucks employees around the world.
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