New Starbucks CEO Brian Niccol will focus on improving the chain’s U.S. business in his early days on the job before he moves to fix its issues abroad, according to an open letter published on Tuesday.
“… In some places — especially in the U.S. — we aren’t always delivering,” Niccol wrote in the open letter addressed to customers, employees and stakeholders. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”
Niccol, who calls himself a longtime Starbucks customer, outlined four areas for improvement: the barista experience, morning service, its cafes and the company’s branding.
“This is our plan for the U.S., and where I need to focus my time initially,” Niccol wrote in the letter.
To tackle those challenges, Starbucks will invest in tech to improve baristas’ working conditions and allow them to craft drinks more quickly, make the company’s supply chain more efficient and upgrade its app and mobile ordering.
Later, Niccol plans to address its international business, such as in China, its second-largest market. Starbucks’ business in China has struggled to bounce back from the Covid-19 pandemic, and increased competition has led the coffee chain to lean more on discounts and promotions to win back customers.
“In China, we need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market,” Niccol said.
He also said the company will try to curb what he called “misconceptions” about its brand in the Middle East. Many U.S. brands, including Starbucks and McDonald’s, have faced boycotts tied to backlash against U.S. support for Israel’s offensive in 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 getting back to Starbucks,” said Niccol.
The coffee giant named Niccol as chief executive in August, in conjunction with the company’s ouster of then-CEO Laxman Narasimhan. The leadership shake-up followed several quarters of slumping sales for Starbucks as demand for its drinks declined, particularly in the U.S. and China.
Niccol’s official first day was Monday. He joined Starbucks from Chipotle Mexican Grill, where he spent six years as chief executive, turning it from a burrito chain in crisis into a consistent favorite of both diners and Wall Street. Now, he is tasked with executing a turnaround for Starbucks.
An open letter for all partners, customers and stakeholders
As I step into 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, speaking with partners and customers, and talking with teams across operations, store design, marketing and product development.
In each conversation, two truths emerged: First, Starbucks is a beloved brand with wonderful people. We are woven into the…
Read More: New Starbucks CEO Brian Niccol outlines plans for business