Starbucks’ New CEO Aims to Restore Its Coffee Shop Roots
Starbucks has experienced a decline in recent years, with sales shrinking as the company shifted from its traditional sit-down coffee shop model to one where customers place orders via mobile apps and pick up their drinks at the counter. The new CEO, Brian Niccol, has a plan to turn things around, starting with a focus on bringing back comfort and community.
On his second day as CEO, Niccol sent a letter to employees and customers, expressing his vision to return Starbucks to its roots as a “community coffeehouse.” His plan includes comfortable seating, thoughtful design, and a clearer distinction between “to-go” and “for-here” service.
“There’s a shared sense that we’ve drifted from our core,” Niccol said. “We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells, and sounds that define Starbucks.”
Niccol, known for his successful turnarounds at Chipotle and Taco Bell, is taking over during a challenging time. He is the company’s fourth CEO in two years, amid a slump in business and pressure from both employees and investors.
Starbucks’ sales have dropped for two consecutive quarters, and customers have voiced frustrations over rising prices, slow app-based pickups, and mediocre food options. Additionally, as a company known for its progressive values, Starbucks has faced a wave of union organizing due to concerns over working conditions, pay, and benefits.
The company is shifting from a primarily brick-and-mortar business to one driven by online sales, with mobile and drive-thru orders now accounting for more than 70% of its sales in the U.S. Niccol acknowledged in his letter that some stores feel overly “transactional,” with overwhelming menus, inconsistent products, and long wait times.
He pledged to empower baristas by ensuring they have the tools and time to craft quality drinks, addressing employee complaints about mobile orders piling up and overwhelming staff.
Despite his ambitious plans, Niccol has faced scrutiny for commuting between his home in Newport Beach, California, and Starbucks’ Seattle headquarters via corporate jet. Nevertheless, the company says he will spend time in stores, at headquarters, and with employees globally as part of his leadership approach.
