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Starbucks will simplify its “overly complex” menu, according to its new CEO Brian Niccol

Starbucks will simplify its “overly complex” menu, according to its new CEO Brian Niccol

2 minutes, 21 seconds Read

Your Starbucks order could change very soon.

In October, Starbucks reported preliminary fourth-quarter net sales of $9.1 billion, down 3% from a year ago. It is also the third consecutive quarter in which the coffee giant has reported a decline in sales. And that's what Brian Niccol, the company's new CEO, wants to address by streamlining operations — including the chain's complex menu.

“People love Starbucks, but I have heard from some customers that we have strayed from our core, that we have made it harder to be a customer than it should be, and that we have stopped communicating with them” , Niccol shared in a pre-recorded video uploaded to the Starbucks website. “To welcome all of our customers back and return to growth, we must fundamentally change our existing strategy.” He added that the “Back to Starbucks” plan will be that “fundamental change.”

According to Niccol, who came from Chipotle, the company will work to return to its “core identity” to ensure customers continue to come back. “To be successful, we need to address staffing in our stores, eliminate bottlenecks and make things easier for our baristas,” he said. “We will simplify our overly complex menu, adjust our pricing architecture and ensure every customer feels like Starbucks is worth it every time they visit.”

Food & Wine reached out to Starbucks to clarify what this simplification means, and a spokesperson told them that “we have no further comment beyond the preliminary fourth quarter and full fiscal year 2024 results reported on October 22.” “We are still in a calm phase. We will provide insight into the Back to Starbucks plan during the fourth quarter and full fiscal year 2024 earnings conference call on October 30.

And while some may be disappointed to see some of their favorite concoctions disappear from the menu, this may be the best way forward.

Starbucks said U.S. same-store sales fell 6% year over year, while total in-store transactions fell 10%. It added: “Accelerating investment in an expanded product offering, coupled with more frequent in-app promotions and integrated marketing to drive footfall, has not improved customer behavior, particularly traffic across both Starbucks Rewards and non- SR customer segments.”, resulting in lower than expected performance.” So yeah, you can probably say goodbye to that olive oil latte.

“While our efficiency efforts continued to perform as planned, they were not sufficient to offset the impact of reduced traffic,” added Starbucks CFO Rachel Ruggeri. “We are developing a plan to turn our business around, but it will take time. We want to increase our confidence in the company and provide certainty as we advance our turnaround.”

Niccol added that he is confident in the Back to Starbucks plan. “With a focus on coffee and customers, combined with an inviting coffeehouse experience created by our Green Apron partners,” he said, “we will remind people why they love Starbucks.”

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