Starbucks CEO Brian Niccol vows to improve US stores

New Starbucks CEO Brian Niccol said he will focus on revitalizing the coffee shop culture at the chain’s U.S. stores as he takes the helm amid lackluster demand for its premium lattes.

Starbucks named Niccol as its CEO in a surprise move last month, replacing Laxman Narasimhan after the company’s comparable sales fell for the second straight quarter this year.

In his first week on the job, Niccol said in an open letter that he would initially focus on US stores delivering just-in-time drinks and food and enhancing the in-store experience for customers in an effort to “reposition the brand as the coffee shop of community”.

There should be a clear distinction between to-go and to-go service in stores, added the former CEO at burrito chain Chipotle Mexican Grill.

Niccol said he would spend time in stores, meeting with suppliers and partners in an effort to improve the company’s supply chain, as well as its app and mobile ordering platform.

“In some countries—particularly in the U.S.—we’re not always delivering. It can seem transactional, menus can feel overwhelming, the product inconsistent, the wait too long, or the delivery too rushed. These moments are opportunities for us to better”, he wrote.

“We’re going back to Starbucks. We are refocusing on what has always set Starbucks apart,” said Niccol.

Starbucks rolled out its Siren System plan, which includes equipment upgrades, at its US company-operated stores this summer to speed up service.

Regarding its China business, Niccol said Starbucks needed to “capitalize on its strengths” in the market. Competition from more affordable brands has hurt Starbucks in that market, with comparable sales falling in double digits for two straight quarters.

In July, Narasimhan said on a post-earnings call that Starbucks was open to looking at strategic options, including joint ventures and partnerships for its China business.

Niccol said Starbucks would work to “dispel misconceptions” about the brand in the Middle East, as Western brands have been hit by a spontaneous boycott campaign linked to the Gaza war.

Starbucks has also faced pressure from activist investor Elliott Investment Management this year to improve its business as the company’s sales stagnate.