Starbucks CEO Promises Menu Overhaul Amid Declining Sales
Starbucks’ new CEO, Brian Niccol, has vowed to simplify the company’s “overly complex” menu in a bid to attract customers and boost falling sales. Niccol announced the coffee giant will review its pricing strategy as part of a broader effort to address sluggish performance, particularly in key markets like China, where sales dropped 14% between July and September.
The coffee chain’s global sales also declined by 7% during the same period, with the rising cost of living impacting consumer spending. Niccol acknowledged additional operational challenges, including staff shortages and customer congestion in stores, contributing to the brand’s slowdown.
“We will simplify our overly complex menu, fix our pricing, and ensure every customer feels that Starbucks is worth it every time they visit,” Niccol stated. He also highlighted the need to improve mobile ordering to prevent it from overwhelming the in-store experience.
Financial experts, including Randeep Somel of L&G, have supported the idea of streamlining the menu, suggesting it could enhance service speed and reduce long queues during peak hours.
Niccol, previously CEO of Chipotle, has been tasked with steering Starbucks through turbulent times. Despite the ambitious overhaul, the company faced criticism over his use of a corporate jet to commute long distances, which some saw as at odds with Starbucks’ environmental commitments.
The company has also been navigating social media backlash related to union disputes and political controversies. Starbucks is set to release its full financial results next week, having already suspended its forecasts for the coming year.
Niccol’s plans aim to re-energise the brand and restore confidence in the chain, as Starbucks looks to win back customers in a challenging global economy.
