New Starbucks CEO Brian Niccol is setting a bold agenda for the company, aiming to complete customer orders in four minutes or less.
"When you start to use that metric, you quickly discover where our stores have a real problem," Niccol stated, adding that he plans to be "maniacal" about addressing service delays.
Currently, only half of all transactions meet this target, prompting an urgent need for reform. Niccol aims to tackle issues contributing to longer wait times, such as inadequate staffing during peak hours and inefficient food preparation.
Trimming Menu and Customizations
To facilitate quicker service, Niccol has announced a strategic reduction of menu offerings. The first item to be cut is the Oleato line of olive-oil infused beverages, which will no longer be available at most locations from early November.
This decision ends a product linked to former CEO Howard Schultz, who championed Oleato as a "transformational idea," and Niccol believes it is necessary to streamline operations.
In another significant change, Starbucks will stop charging extra for non-dairy milk options beginning November 7, when the holiday menu launches. This adjustment addresses one of the most common requests from customers and aims to simplify the ordering process.
Newsweek has reached out to Starbucks for comment via email.
Reimagining Store Atmosphere
Niccol's vision extends beyond operational efficiency; he wants to restore Starbucks as a community gathering place.
Plans include reintroducing ceramic mugs for in-store customers and Sharpie pens for baristas to personalize orders.
The company is also committed to improving seating arrangements and creating designated areas for mobile order pickups.
Niccol emphasizes the importance of customer experience, stating, "I want you to feel like you've walked into a special space." This focus on comfort and community reflects a shift back to the company's roots.
Tackling Financial Hurdles
Starbucks is facing financial challenges, reporting a 3% drop in quarterly revenue to $9.1 billion for the July-September period, along with a year-over-year revenue increase of less than 1%, totaling $36 billion.
In light of these disappointing figures, Starbucks has suspended its financial guidance for 2025, allowing Niccol to assess the business more thoroughly.
The company's response to declining customer traffic in the U.S. and China emphasizes the urgency of Niccol's plans to enhance service and customer satisfaction. By prioritizing efficient service and a welcoming atmosphere, Niccol aims to reposition Starbucks as a leader in the coffee industry amid increasing competition and market pressures.
This article includes reporting from The Associated Press