Starbucks’ CEO Brian Niccol aims to revive cosy coffeehouse charm amid digital shift
In an open letter, Brian Niccol said Tuesday he wants to once again make the cafes “inviting places to linger” with a clear distinction between dine-in and to-go service
Starbucks’ new Chief Executive Officer Brian Niccol said he plans to redouble efforts to improve the company’s physical locations, as digital ordering has radically altered the way the coffee chain does business.
In an open letter, Niccol said Tuesday he wants to once again make the cafes “inviting places to linger” with a clear distinction between dine-in and to-go service. Recent store visits revealed “a shared sense that we have drifted from our core,” he said.
Niccol took over on Monday, weeks after the company’s board ousted its previous CEO, whose 18-month tenure was marked by a sales slump and an identity crisis. In recent years, the company has emphasised to-go orders from its mobile app and reduced seating in cafes, a shift that has overwhelmed stores and upended the image of cosy coffee shop it had crafted for decades.
The new leader’s initial focus will be on the US business. Niccol’s plan involves investments in technology, bolstering the company’s supply chain, and upgrading the mobile ordering platform.
“In some places – especially in the US – we aren’t always delivering,” Niccol said. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”
Investor expectations are high. The chain’s shares have surged about 18% since his appointment in mid-August. The stock was little changed on Tuesday in New York trading, in line with the S&P 500 Index.
