New Starbucks (SBUX) Chief Executive Officer (CEO) Brian Niccol has unveiled his strategy for the first 100 days, focusing on realigning the coffeehouse chain with its foundational values.
In a letter released online on Tuesday to both employees and customers, Niccol acknowledged the challenges Starbucks locations face, particularly when baristas are overwhelmed by mobile orders.
He outlined plans to clearly differentiate between “to-go” and “for-here” services, framing this move as part of a broader effort to return Starbucks to its roots as a community-focused coffeehouse.
“There is a collective belief that we have strayed from our core values,” Niccol wrote. “We have a chance to improve the store experience for our partners, which will, in turn, benefit our customers.”
Niccol, who recently stepped down from his role at Chipotle Mexican Grill (CMG), joined Starbucks this week. The company is aiming to improve its performance after several disappointing quarters, with Niccol facing a tough consumer spending environment.
Starbucks has reported declines in same-store sales over the past two quarters as Americans have reduced discretionary spending amid rising costs for essentials.
Presence in China
Investors are closely monitoring updates on Starbucks’ strategy for China, following a 14% year-over-year decline in same-store sales in the region last quarter. Niccol mentioned that his initial focus will be on the U.S. market, but he also hinted at future international plans.
“In China, we need to explore potential strategies to drive growth and leverage our strengths in this dynamic market,” Niccol stated in his letter. Together, China and the U.S. account for 61% of Starbucks’ business.