Starbucks’ new CEO hints the chain may have become a little too convenient
Brian Niccol became CEO of Starbucks on Monday.
New Starbucks CEO Brian Niccol wants you to stop by your local Starbucks store — then, maybe, kick back, hang around, order a second coffee, and chat with your fellow customers.
That’s something fewer people are doing these days, Niccol said in his first public message as Starbucks’ top executive. And he’s hoping to change that.
“We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks,” Niccol said in the open letter released on Tuesday.
“Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between ‘to-go’ and ‘for-here’ service,” he added.
Niccol became Starbucks’ CEO on Monday after several years at Mexican grill chain Chipotle. He’s joining Starbucks as it faces slowing sales and looks for ways to get customers ordering again.
The chain has invested in its drive-thru, pick-up, and delivery sales over the last several years — efforts that at times have been at odds with its traditional role as a “third place” for people to gather outside work and home.
One employee told B-17 that wait times have increased at the Starbucks store he works at in part because of the “to-go” service that Niccol mentioned in his letter — namely, an increase in the number of orders that customers place through the Starbucks app for pickup. The store often struggles to fill those orders, especially from customers who walk in to order, since it’s understaffed, the employee said.
Analysts have said that Niccol could oversee changes to elements of the company’s operations. His Tuesday letter didn’t offer many specific steps, but Niccol did say that he plans to “spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps.”
Visiting a Starbucks store in the US “can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic,” Niccol wrote.
“These moments are opportunities for us to do better,” he added.