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Starbucks CEO Brian Niccol vows to improve US stores


Starbucks' new chief Brian Niccol on Tuesday outlined his plan to get the struggling java giant back on track — vowing to “reestablish the brand as a community coffeehouse.”

In his first week in the top job, Nicole said Open letter They will initially focus on US stores, where they will provide timely drinks and food and provide a better in-store experience for customers. Many of whom have complained about the long wait times for their expensive lattes.

The former CEO of burrito chain Chipotle Mexican Grill wrote that there should be a clear distinction between “to-go” and “for-here” services at Starbucks locations.


CEO Brian Niccol took over from Laxman Narasimhan on Sept. 9, at a time when the coffee chain is dealing with weak demand in the United States and China. AP

Starbucks appointed Nicole as its CEO last month Laxman Narasimhan was appointed to replace him less than two years after he was appointed to the top job. The company faced mounting pressure from activist hedge funds and months of declining sales.

Niccol said he would visit stores to meet suppliers and partners in his first 100 days to help fix problems with the company's supply chain and mobile app.

“In some places — particularly in the US — we can't always deliver. It can feel transactional, the menu can feel overwhelming, the product can be inconsistent, the wait can be too long, or the handoff can be too hectic,” Niccol wrote. “These moments are opportunities for us to do better.”

Nichol said the company would ensure stores were designed with comfortable seating and “attractive spaces” to re-establish its reputation as a community cornerstone.

“We're getting back to Starbucks,” he said. “We're refocusing on what has always made Starbucks different.”


Starbucks Logo
Niccol said U.S. stores will focus on delivering drinks and food in a timely manner and providing a better in-store experience for customers. AP

Starbucks shares rose 1.2% on Tuesday.

Niccol has been widely praised for leading a turnaround at Chipotle, leading the burrito chain's stock to rise more than 50% in the past year.

Starbucks shares rose 25% on news of his appointment—a record percentage increase—while Chipotle shares fell.

Over the summer, Starbucks implemented a siren system plan across all of its U.S. stores to help reduce wait times and increase efficiency — including an upgrade to equipment.

Nicol also mentioned improvements being made to its international divisions.

He said Starbucks needs to “leverage its strengths” in its China business, as competition from more affordable coffee rivals has hurt Starbucks' share in that market. Comparable sales for its China division have declined for two consecutive quarters.

Niccol said Starbucks will also try “Clearing misconceptions” about the brand in the Middle East Boycott campaigns connected to the war in Gaza have targeted the coffee chain.

Starbucks has also faced pressure Activist Investor Elliott Investment Management Due to decline in the company's sales this year, the company has taken this step to improve its business.

post with wires

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