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Starbuck’s Confidential: New CEO Went ‘Under Cover’

You can’t say Starbuck’s new corporate troubleshooter is an ivory-tower autocrat who thinks he knows everything about everything. Turns out Starbuck’s CEO Brian Niccol went ‘under cover’ to research the chain’s woes before reporting to the Board and fans…

Smiling Baristas - © 2024 Starbuck'sHappier, more productive barristas is a central element
of the Brian Niccol ‘Back’s To Starbuck’s’ plan…

Kudos to Brian Niccol for performing stealthy due diligence on Sharbuck’s woes and weaknesses before formulating his plan to bring back the spiralling premium coffee purveyor from the ‘brink’…

Well thought-out

Niccol was appointed this past August to save failing Starguck’s from itself. The premium coffee chain fired its then-CEO for making major image and business model decision that angered both staff and fans. Sales were plummeting.

After he took the reins, Niccol has revealed, he spent several weeks ‘under cover’, stalking a number of LA-area Starbuck’s locations. Casing the joints, you might say…

The new CEO’s plan to resurrect the company is aptly named the ‘Get Back To Starbuck’s’ program. It’s based on restoring the brand’s original ‘community gathering place’ identity and ‘friendly hangout atmosphere’.

But he’s also cognizant of future trends.

Latest stats show more than 30 percent of Starbuck’s transactions are performed through the mobile app. And – unexpectedly to many – 60 percent of sales now come from cold beverages.

What he’s proposing

Niccol’s business model for the future pivots on a new floor plan and traffic flow pattern that gets take-out customers in and out in under 4 minutes. But it also features a return of dine-in seating (which the previous regime was removing). Notably, that will include the return of ‘more-comfortable’ seating – i.e.- the famous comfy armchairs.

The menu will be streamlined to make decision-making and order fulfillment faster and easier for both customers and employees. Barristas will once again write your name on your cup with their Sharpie. The self-service ‘condiment’ bar will be back.

One more thing…

Will prices – especially for basic beverages such as plain coffee – drop back into the realm of reality? At least one online commenter summed up the central focus of fan discontent – soaring Starbuck’s menu prices succinctly:

“They should also realize that a cup of black coffee shouldn’t be $3.00. It should be $1.50. And a mocha should be, like $3.50. The gross inflation is another reason I don’t go there anymore,” says Sales and Marketing Specialist Amy Eades. “Or make it worth $6, and brew the espresso fresh, not just have it all premixed. And actually have fresh whipped cream.”

My take

I applaud the details of the Niccol ‘Back to Starbuck’s’ plan that have so far leaked out. And I agree with Eades about the price point. However, I’m not so sure about the logistical practicality of her demand for ‘actual, fresh whipped cream’…

~ Maggie J.

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