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More Sharpies, less customizations: how Starbucks wants to reclaim its identity
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More Sharpies, less customizations: how Starbucks wants to reclaim its identity

At the beginning of September, just a few days later Brian Nicol had taken over as the new CEO of Starbucks, he issued a open letter addressed to all partners, customers and stakeholders of the coffee chain, recognizing two major truths about the brand: The first is that Starbuckswith its nearly 16,500 locations across the United States, is “woven into the fabric of people’s lives” and the communities they serve; the second is that, in its efforts to grow and expand (and explore the limits of what a the frappuccino cup can hold), Starbucks doesn’t really look like Starbucks anymore.

“There is a shared feeling that we have moved away from our core,” Niccol wrote. “We have the opportunity to improve the in-store experience for our partners and, in turn, our customers. »

For anyone who has visited a Starbucks recently, especially a pickup-only location, Niccol’s words probably ring true — and are certainly reflected by customers on social media. A post onformerly Twitter, from late October reads: “Starbucks going from a really nice place to sit and read or hang out to high octane, claiming a production warehouse for pickup and ordering at Stealing is one of the most difficult hospitality trials of all time. »

In his letter, Niccol said that some customers still feel the magic of “connection and joy, and of course good coffee” at their U.S.-based locations, but that sometimes Starbucks does not deliver its products. “It may seem transactional, the menus may seem overwhelming, the product is inconsistent, the wait too long, or the transfer too hectic,” he wrote. “These moments are opportunities for us to do better.”

He continued: “Today I make a commitment: We are returning to Starbucks. We’re refocusing on what has always set Starbucks apart: a welcoming coffee shop where people come together and where we serve the best coffee, hand-prepared by our skilled baristas. This is our enduring identity. We will innovate from there.

Now, nearly two months into Niccol’s tenure at Starbucks, and following a disappointing quarterly earnings report, it’s starting to become clearer what exactly returning to Starbucks looks like for the company – and it probably involves a lot more Sharpies than one might initially suspect.

As reported CNBCStarbucks’ same-store sales fell for the third straight quarter, and this quarter’s 7% drop in same-store sales was the company’s biggest decline since the Covid-19 pandemic. “Our fourth quarter performance makes it clear that we need to fundamentally change our strategy in order to return to growth and that’s exactly what we’re doing with our ‘Back to Starbucks’ plan,” CEO Brian Niccol said in a statement. .

His plan has four main components:

Empowering Starbucks baristas to take care of their customers

“We will ensure our baristas have the tools and time to make great drinks, delivered personally to every customer, every time,” Niccol wrote in his overview of the “Return to Starbucks” plan. “For our partners, we will build on our tradition of retail leadership by making Starbucks the best place to work, with career opportunities and a clear path to growth.”

One of the main ways Niccol said he plans to support baristas is by simplifying the chain’s now-expansive menu and introducing “customization guardrails” to streamline the ordering process. Currently, Starbucks says there are approximately 170,000 possible drink combinations available to Starbucks customers, but external estimates put the number at more than 300 billion. (And, as Inc. editor Bill Saporito wrote in the New York Times a few weeks ago, “the person in front of you always seems to order 100 million. “)

Starbucks baristas have consistently raised the alarm about how the number of drink customizations possiblewhich many customers select through the chain’s digital app to order online, has clogged their workflow and resulted in additional labor. Simplifying the menu, especially as the holidays approach, is one way to address these concerns.

Have a good morning, every morning

“People start their day with us and we need to meet their expectations,” Niccol wrote. “That means delivering exceptional drinks and food, on time, every time.”

One of Niccol’s main goals is to ensure customers receive hand-delivered meals from a barista within four minutes of ordering, a benchmark the chain only meets for half of its orders. “When you start using this metric, you quickly find out where our stores have a real problem,” Niccol said. “We’re going to be maniacs about taking care of it.”

Again, simplifying the menu is a good starting point, although depending on the Associated PressNiccol said the chain is also looking at how stores are staffed during peak hours. The channel will also be stop charging customers extra for non-dairy alternatives and will return the condiment bar, which was removed during the pandemic, to stores.

Reestablishing Starbucks as a Community Cafe

For decades, Howard Schultz, founder of Starbucks positioned the coffee chain as a “third place,” where customers could spend time drinking coffee, listening to music and socializing. However, in recent years, Starbucks has focused on mobile fulfillment and delivery – a strategy that has only been strengthened during the pandemic.

However, Niccol said it’s time for the company to get back to providing a better experience for customers who want to linger for a while.

“We are committed to enhancing the in-store experience, ensuring our spaces reflect the sights, smells and sounds that define Starbucks,” he wrote. “Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between ‘to-go’ and ‘dine-in’ service.

According to CNBCStarbucks plans to bring back ceramic mugs for restaurant drinks, as well as start stocking physical newspapers again. In another return to tradition, baristas will also return to writing customers’ names on their cups, rather than printing stickers. It’s a personal touch that Niccol says will make the difference. That is, once the company replenishes its stock of Sharpies.

“I thought the number I heard was about 200,000 Sharpies that we needed to track down,” Niccol said in an interview with CNBC’s “Squawk Box.” “Unfortunately, it’s not as simple as going to Staples and buying Sharpies.”

Tell their story

“It’s time for us to tell our story again, reminding people of our unparalleled coffee expertise, our role in communities and the special experience that only Starbucks can deliver,” Niccol said. “We will not let others define who we are.”

One of the ways the company does this is by returning, as Quartz to put it another way, “old-fashioned TV commercials to make a difference.” According to the publication, customers can expect to see “animated advertisements that highlight the efforts of agronomists, master roasters and baristas preparing the drinks.”

“This reminds customers of all ages that Starbucks serves the best coffee,” Starbucks CEO Brian Niccol told investors during the company’s Oct. 30 earnings conference call.

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