new Starbucks Chief Executive Brian Niccol will focus on improving the chain’s U.S. operations early in his tenure before moving on to address issues overseas, according to a person familiar with the matter. Publish an open letter Tuesday.
“…In some places, particularly in the United States, we have not always delivered on our promises,” Nicholl wrote in an open letter to customers, employees and stakeholders. “It can feel transactional, the menu can be overwhelming, the offerings are inconsistent, wait times are too long or handoffs are too busy. These moments are opportunities for us to do better.”
Nicole, who describes herself as a long-time Starbucks customer, outlined four areas for improvement: barista experience, morning service, cafe and company branding.
“This is our plan for the United States and where I need to initially focus my time,” Nicol wrote in the letter.
To address these challenges, Starbucks will invest in technology to improve working conditions for baristas so they can make drinks faster, increase the efficiency of the company’s supply chain, and upgrade its app and mobile ordering.
Subsequently, Nicol plans to expand its international business, such as China, its second largest market. Starbucks’ business in China has been struggling to recover from the Covid-19 pandemic, and increased competition has led the coffee chain to rely more on discounts and promotions to win back customers.
“In China, we need to understand potential avenues for growth and leverage our strengths in this dynamic market,” Nicol said.
He also said the company would work to curb what he called “misconceptions” about its brand in the Middle East. Many American brands, including Starbucks and McDonald’s, are facing boycotts over America’s support for Israel’s attack on Gaza.
But in Nicol’s first 100 days, he plans to spend time in the chain’s cafes and offices and meet with key suppliers in the United States
“Today, I’m making a promise: We’re going back to Starbucks,” Nicole said.
In August, the coffee giant appointed Nicol as CEO, while it also ousted then-CEO Laxman Narasimhan. The leadership changes come as Starbucks sales have declined for several quarters due to declining demand for beverages, particularly in the United States and China.
Nicole’s official first day on the job is Monday. He joined Starbucks in Chipotle Mexican BBQHe served as CEO there for six years, transforming the taco chain in crisis into a favorite among diners and Wall Street alike. Now, he’s tasked with turning Starbucks around.
An open letter to all partners, customers and stakeholders
As I enter my first week as CEO, I do so not only as a leader, but as a long-term customer. I’ve spent a lot of time in our stores over the past few weeks, talking with partners and customers, and with teams in operations, store design, marketing, and product development.
In every conversation, two facts emerged: First, Starbucks is a beloved brand with great employees. We are embedded in people’s lives and the communities we serve. Second, we all share a common feeling that we have strayed from our core. We have the opportunity to provide a better store experience for our partners as well as our customers.
Starbucks was founded on a passion for high-quality coffee—handcrafted and enjoyed with care by our exceptional Green Apron partners. Coffee is our heart. We own and operate Hacienda Alsacia, our coffee farm on the slopes of Poas Volcano in Costa Rica, which is at the heart of our research and innovation efforts. Through our network of Farmer Support Centers, Starbucks agronomists share research, education and best practices with local farmers. We invest in the highest quality coffee beans. Our team of skilled roasters carefully prepares these coffee beans at five Starbucks roasting facilities across the United States, serving the European, Middle Eastern and African markets in Amsterdam, China in Kunshan, and growing markets in Karnataka, India. market to provide services. We also operate Starbucks Reserve Roasteries in Milan, Shanghai, Tokyo, New York, Chicago and Seattle, where we roast small-batch Reserve coffees. We design the best equipment for our stores and invest in training our baristas to ensure every cup reflects our commitment to excellence. Each drink is more than just a drink; it’s a handcrafted moment, crafted with care.
Our store is more than just a place to drink. They are a gathering place, a community center where conversations are sparked, friendships are built, and everyone is welcomed by an enthusiastic barista. Going to Starbucks is all about connection, joy, and of course, great coffee.
Many of our clients still experience that magic every day, but in some places—especially in the United States—we’re not always able to deliver. It can feel transactional, the menu can be overwhelming, the offerings inconsistent, wait times too long or handoffs too busy. These moments are opportunities for us to do better.
Today, I make a promise: We will return to Starbucks. We’re refocusing on what has always made Starbucks special – a welcoming coffee shop where people gather, and we serve the finest coffee handcrafted by skilled baristas. This is our enduring identity. We will innovate from here.
We will first focus on four key areas where we know we will have the greatest impact:
- Empowering our baristas to take care of our customers: We’ll make sure our baristas have the tools and time to make great drinks every time and hand-deliver them to every customer. For our partners, we will build on our legacy of leadership in retail by making Starbucks the best place to work, providing career opportunities and clear paths for growth.
- Every morning, treat your morning correctly: People start their day with us and we need to meet their expectations. This means quality drinks and food delivered on time every time.
- Rebuilding Starbucks into a community cafe: We’re committed to enhancing the in-store experience—making sure our spaces reflect the unique sights, smells and sounds of Starbucks. Our stores will be places to stay, with comfortable seating, thoughtful design and a clear distinction between “to-go” and “on-site” service.
- Tell our story: Now is the time for us to tell our story again—to remind people of our unparalleled coffee expertise, our role in the community, and the special experiences that only Starbucks can offer. We don’t let others define who we are.
To support our vision for the U.S. business, we are investing in technology to enhance the partner and customer experience, improve our supply chain and grow our app and mobile ordering platform.
This is our plan for the United States, and that’s where I need to focus my time first. But Starbucks is a global company. We operate in 87 markets around the world, and thousands of talented Green Apron Partners share their love of coffee with customers every day. I know I have a lot to learn from this great team and I’m looking forward to getting on the road and spending time with them. In China, we need to understand potential ways to grow in this dynamic market and leverage our strengths. Internationally, we see tremendous potential for growth, particularly in regions such as the Middle East, where we will work hard to dispel misconceptions about our brand, as well as Asia Pacific, Europe and Latin America, where there is a strong affinity for Starbucks.
My focus for the first 100 days was clear. I will be spending time in our stores and support centers, meeting with key partners and suppliers, and working with our teams to drive these critical first steps. Together we will return to the essence of Starbucks.
let’s go,
Brian
About The Author
