Several policies are returning to Starbucks’ locations in the United States and Canada — part of CEO Brian Niccol’s task of reversing sales and traffic declines at the institution.
Niccol joined the chain in September after aiding Chipotle's exponential growth and transformation.
When Niccol stepped into his role, he vowed to reinstate the chain's welcoming coffeehouse charm that made the brand what it is today.
"Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista," Niccol said in an open letter.
As a result of this new leadership, the chain is bringing back condiment bars after they were taken away during the height of the COVID-19 Pandemic, and baristas will return to hand-writing customers’ names on their cups using Sharpies. Both changes are part of Starbucks’ plans to reboot the coffee house “vibe” that’s diminished in recent years.
The return of milk and sugar stations are another change for Starbucks. Some speculate that it represents something much bigger for the world’s largest coffee chain.
“I think it's an acknowledgement that Starbucks went too far in overloading its baristas with endless ways to prepare drinks,” NHS Junior Nichole Tabor said.
“Our customers are asking for it and our baristas are saying it would help them deliver the speed of service that they want to provide,” Niccol said in a previous earnings call.
The return of personalizing cups is also a Niccol directive, who previously said the chain has to “track down” 200,000 Sharpies to make it happen. Starbucks released a new TV advertisement promoting the personal touches that come with handwritten notes, as well as a slight name update to “Starbucks Coffee Company.” (The company didn’t immediately respond to CNN’s request for comment about the branding change.)
Moreover, free refills on some “for here” orders are expanding to all of its paying customers — something that was once reserved for members of its loyalty program. They will be served in ceramic mugs or a clean personal cup brought from home and are eligible for hot or iced coffee and tea orders.
In addition, Starbucks isn’t letting anyone hang out or use its restrooms without making a purchase. In a press release, the company said it heard from customers and employees that “access to comfortable seating and a clean, safe environment is critical to getting back to the Starbucks they know and love,” resulting in the company getting rid of its open-door policy.
Other tweaks include a ban on panhandling, discrimination, consuming outside alcohol and vaping, according to the policy posted online. Employees have allegedly received training on the new rules.
As of now, Starbucks stock is up 7% over the past 12 months, but the company has posted three straight quarters of slumping sales and declining customer visits. Global sales at stores open for at least a year fell 7% last quarter and the number of customer transactions sank by 8%.
As a part of Starbucks’ goal to bring the chain back to its roots, the coffee franchise plans to reduce its menu by “roughly 30% in both beverages and food,” CEO Brian Niccol said at a January earnings call.
Although the exact menu items being cut have yet to be officially announced, the news sparked fear among fans that their favorite items would be relinquished.
“I am absolutely shocked that the Cookie Dough Cake Pop is no longer being served. It was one of my favorites, and I am really upset about this decision that was made by Starbucks. They may be making supposed little changes to the menu, but those little changes can go a long way in terms of support from customers. I wonder what other menu items will be cut,” NHS sophomore Clare Csaszar said.
A Starbucks spokesperson told The U.S. Sun that the changes would be positive for coffee fanatics.
“We’ve been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics,” said the spokesperson.
“They make so much money off of the other stuff they sell that isn’t coffee. I don’t know why they would be getting rid of items that bring in a lot of money like baked goods and possibly even refreshers,” NHS sophomore Sierra Marx said.
The spokesperson clarified that the food and drinks being cut would be “easily substitutable” menu items that are “not commonly purchased and are often out of stock.”
By reducing its menu, Starbucks will be able to focus on ensuring that the products customers “value most” are available and of high quality, according to the spokesperson. However, this focus does not apply to all as exemplified by Csaszar’s views on the removed item she values–the cookie dough cake pop.
The company will also rely on its baristas for inspiration, as it did last year with its lineup of lavender beverages in the spring.
The spokesperson also promised that Starbucks would be “more responsive and tuned in to cultural moments” following the menu reduction, citing the chain’s Dubai Chocolate Bar Matcha Latte as an example.
These new implementations and changes within Starbucks are underway as of February. All of the specific details have yet to be officially announced.
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