New Starbucks CEO Brian Niccol will focus on improving the chain’s U.S. business in his first days in office before turning to solving problems abroad, according to an open letter published Tuesday.
“…In some places – especially in the US – we don’t always keep our promises,” Niccol wrote in the open letter to customers, employees and stakeholders. “It can feel like a transaction, the menu can be overwhelming, the product is inconsistent, the wait time is too long or the handover is too rushed. These moments are opportunities for us to improve.”
Niccol, who describes himself as a long-time Starbucks customer, outlined four areas that could be improved: the barista experience, morning service, cafes and the company’s branding.
“This is our plan for the United States and that is where I must focus my time first,” Niccol wrote in the letter.
To address these challenges, Starbucks will invest in technology to improve baristas’ working conditions and enable them to prepare drinks faster, make the company’s supply chain more efficient, and improve its app and mobile ordering functionality.
Later, Niccol plans to focus on its international business, such as China, its second-largest market. Starbucks’ business in China has struggled to recover from the Covid-19 pandemic, and increasing competition has led the coffee chain to rely more on discounts and special offers to win back customers.
“We need to understand the potential growth paths in China and leverage our strengths in this dynamic market,” said Niccol.
He also said the company would try to clear up the “misconceptions” about its brand in the Middle East. Many US brands, including Starbucks and McDonald’s, have been boycotted because of US support for the Israeli offensive in Gaza.
But in the first 100 days, Niccol plans to spend time in the chain’s cafes and offices and meet with key suppliers in the United States.
“Today I make a commitment: We are returning to Starbucks,” Niccol said.
The coffee giant appointed Niccol as CEO in August after then-CEO Laxman Narasimhan was fired. The leadership change followed several quarters of declining sales at Starbucks as demand for its beverages fell, particularly in the U.S. and China.
Niccol’s official first day of work was Monday. He came from Chipotle Mexican Grillwhere he served as CEO for six years, transforming the struggling burrito chain into a perennial favorite with diners and on Wall Street. Now he’s tasked with getting Starbucks back on track.
An open letter to all partners, customers and stakeholders
In my first week as CEO, I do this not only as a leader, but also as a long-time customer. Over the past few weeks, I have spent time in our stores, speaking with partners and customers, and speaking with 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 involved in the lives of people and the communities we serve. Second, there is a general feeling that we have strayed from our core. We have an opportunity to improve the shopping experience for our partners and, in turn, our customers.
Starbucks was founded on a love of quality coffee – handcrafted by our amazing Green Apron partners and enjoyed mindfully. Coffee is our heart. We own and operate Hacienda Alsacia, our coffee farm on the slopes of Poás Volcano in Costa Rica, which is 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 highest quality beans. Our experienced team of roasters carefully prepares these beans at five Starbucks roasting facilities in the U.S., in Amsterdam for 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 City, Chicago and Seattle, where we roast reserve coffees in small batches. We develop the best equipment for our stores and invest in training our baristas to ensure each cup reflects our commitment to excellence. Every cup is more than a drink; it is a handcrafted moment made with care.
Our stores have always been more than just a place to get a drink. They have been a gathering place, a community center where conversations happen, friendships are formed and everyone is greeted by a friendly barista. A visit to Starbucks is 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 on our promises. It can feel like a transaction, the menu can be overwhelming, the product is inconsistent, the wait time is too long, or the handoff is too rushed. These moments are opportunities for us to improve.
Today I’m making a commitment: We’re returning to Starbucks. We’re refocusing on what Starbucks has always been about – a welcoming coffeehouse where people come together and where we serve the finest coffee, hand-crafted by our expert baristas. That’s our enduring identity. We’ll innovate from here.
We are initially focusing on four key areas that we know will have the greatest impact:
- We empower our baristas to take care of our customers: We ensure our baristas have the tools and time to make great drinks every time, hand-delivered to each customer. For our partners, we build on our tradition of retail leadership by making Starbucks the best place to work, with career opportunities and a clear path to growth.
- Make sure you get off to the right start 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.
- Re-establish Starbucks as a community coffeehouse: We want to enhance the in-store shopping experience and ensure our spaces reflect the sights, smells and sounds that define Starbucks. Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between “to-go” and “for-here” service.
- Tell our story: It’s time for us to tell our story again – and remind people of our unmatched coffee expertise, our role in the community and the special experience that only Starbucks can provide. We don’t let others define who we are.
To support this vision for our U.S. business, we are investing in technologies that improve the partner and customer experience, optimize our supply chain, and further develop our app and mobile ordering platform.
That’s our plan for the U.S., and that’s where I need to focus first. But Starbucks is a global company. We operate in 87 markets around the world, where thousands of talented Green Apron partners share their love of coffee with customers every day. I know I have a lot to learn from these amazing teams, and I’m excited to get out there and spend time with them. In China, we need to understand the potential path to growth and leverage our strengths in this dynamic market. Internationally, we see tremendous growth potential, particularly in regions like the Middle East, where we will work to dispel misconceptions about our brand, and in Asia Pacific, Europe and Latin America, where the love for Starbucks is strong.
My focus for the first 100 days is clear. I will spend time in our stores and support centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps forward. Together, we will return to what makes Starbucks, Starbucks.
Let’s continue,
Brian
