New Starbucks CEO Brian Niccol will focus on improving the chain’s US business during his first few days on the job before moving to fix its problems overseas, according to An open letter has been published on Tuesday.
“… In some places – especially in the US – we don’t always deliver,” Niccol wrote in the open letter to customers, employees and stakeholders. “It can feel transactional, the menus can feel overwhelming, the product inconsistent, the wait too long or the delivery too hectic. Those moments are opportunities to do better.”
Niccol, who calls himself a longtime Starbucks customer, outlined four areas for improvement: the barista experience, morning service, its coffees and the company’s branding.
“This is our plan for the US and where I should focus my time initially,” Nichol wrote in the letter.
To address these challenges, Starbucks will invest in technology to improve baristas’ working conditions and allow them to make drinks faster, make the company’s supply chain more efficient, and upgrade app and mobile ordering.
Later, Niccol plans to engage in international operations, such as in China, its second largest market. Starbucks’ China business has struggled to recover from the Covid-19 pandemic, and increased competition has led the coffee chain to turn more to discounts and promotions to win back customers.
“In China, we need to understand the likely path to conquer growth and leverage our strengths in this dynamic market,” said Niccol.
He also said the company would try to curb what he called “misconceptions” about its brand in the Middle East. Many US brands, including Starbucks and McDonald’s, have faced boycotts linked to backlash against US support for Israel’s offensive on Gaza.
But for Niccol’s first 100 days, he plans to spend time in the chain’s cafes and offices and meet with key suppliers in the U.S.
“Today, I’m making a commitment: We’re going back to Starbucks,” Niccol said.
The coffee giant named Niccol as chief executive in August, in conjunction with the departure of then-CEO Laxman Narasimhan from the company. The leadership shake-up followed several quarters of declining sales for Starbucks as demand for its drinks weakened, particularly in the US and China.
Nicole’s official first day was Monday. Joined Starbucks from Chipotle Mexican Grillwhere he spent six years as CEO, transforming it from a burrito chain in crisis to a firm favorite of both diners and Wall Street. Now, he’s tasked with executing a turnaround for Starbucks.
An open letter to all partners, customers and stakeholders
As I enter my first week as CEO, I do so not only as a leader, but as a long-time customer. Over the past few weeks, I’ve spent time in our stores, talking to associates and customers, and talking to teams across operations, store design, marketing, and product development.
Two truths emerged from each conversation: First, Starbucks is a beloved brand with wonderful people. We are woven into the fabric of life of the people and communities we serve. Second, there is a common sense that we have drifted away from our core. We have the opportunity to make the store experience better for our associates and, in turn, for our customers.
Starbucks was founded on the love of high-quality coffee — handcrafted by our amazing green apron partners and enjoyed with intention. Coffee is our heart. We own and operate Hacienda Alsacia, our coffee farm on the slopes of Costa Rica’s Poás Volcano, which serves as the heart of our research and innovation efforts. From our network of Farmer Support Centers, Starbucks agronomists share research, education and best practices with local farmers. We invest in the best quality beans. Our expert roaster team carefully prepares these beans at five Starbucks roasting facilities in the US, in Amsterdam to serve the EMEA markets, in Kunshan for China and in Karnataka, India for this growing market. We also operate Starbucks Reserve Roasteries in Milan, Shanghai, Tokyo, New York, Chicago and Seattle, where we roast small batches of Reserve coffee. We design the best equipment for our stores and invest in the training of our baristas to ensure that every cup reflects our commitment to excellence. Every cup is more than a drink. it is a handcrafted moment, crafted with care.
Our stores have always been more than just a place to grab a drink. It was a gathering place, a community center where conversations are sparked, friendships are formed and everyone welcomes a welcoming barista. A visit to Starbucks is all about connection and joy, and of course great coffee.
Many of our customers still experience that magic every day, but in some places — especially in the US — we don’t always deliver. It can be transactional, the menus can feel overwhelming, the product inconsistent, the wait too long or the delivery too hectic. These moments are opportunities to do better.
Today, I’m making a commitment: We’re going back to Starbucks. We’re refocusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and where we serve the best coffee, hand-crafted by our expert baristas. This is our lasting identity. We will innovate from here.
We will initially focus on four key areas that we know will have the greatest impact:
- Empowering our baristas to take care of our customers: We’ll make sure our baristas have the tools and time to make great drinks every time, delivered personally to every customer. For our associates, we will build on our tradition of retail leadership by making Starbucks the best place to work, with career opportunities and a clear path to growth.
- Get your morning right, every morning: People start their day with us and we need to meet their expectations. That means delivering great drinks and food, on time, every time.
- Reinventing Starbucks as a Community Cafe: We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks. Our stores will be inviting places to relax, with comfortable seating, thoughtful design and a clear distinction between “to-go” and “for-here” service.
- Telling our story: It’s time to tell our story again — reminding people of our unparalleled coffee experience, our role in communities, and the special experience that only Starbucks can provide. We will not let others define who we are.
To support this vision for our US business, we are making investments in technology that improve the partner and customer experience, improve our supply chain and evolve our app and mobile ordering platform.
This is our plan for the US and where I should focus my time initially. But Starbucks is a global company. We operate in 87 markets around the world, where thousands of talented green apron associates share their love of coffee with customers every day. I know I have a lot to learn from these great teams and I can’t wait to get out on the road and spend time with them. In China, we need to understand the likely path to conquer growth and leverage our strengths in this dynamic market. Internationally, we see huge potential for growth, especially in regions such as the Middle East, where we will work to dispel misperceptions about our brand, and in Asia Pacific, Europe and Latin America, where the love of Starbucks is intense.
My focus for the first 100 days is clear. I will spend time in our stores and Support Centers, meeting key partners and suppliers and working with our team to drive these critical first steps. Together, we’ll get back to what makes Starbucks, Starbucks.
we move on
Brian
