Starbucks CEO Brian Niccol announced that he's looking to streamline the Seattle-based chain's menu, hoping to improve lagging sales. Here's how that affects your daily coffee order.
In October, Starbucks reported its preliminary fourth-quarter net revenue at $9.1 billion, marking a 3% year-over-year drop. It's also the third quarter in a row that the coffee giant has experienced a decrease in revenue. And that's something Brian Niccol, the company's new CEO, wants to address by streamlining operations — including the chain's complex menu.
"People love Starbucks, but I’ve heard from some customers that we've drifted from our core, that we’ve made it harder to be a customer than it should be, and that we’ve stopped communicating with them," Niccol shared in auploaded to the Starbucks website."To welcome all our customers back and return to growth, we need to fundamentally change our recent strategy." He added that the"Back to Starbucks" plan will be that"fundamental change.
Food & Wine reached out to Starbucks for clarification on what that simplification means and were told by a spokesperson that"we don’t have more to share beyond what was released on October 22 as our , given that we’re still in quiet period. We will provide insights into the Back to Starbucks plan during the Q4 and Full Fiscal Year 2024
And really, while some may be disappointed if a few of their favorite concoctions fall off the menu, it may be the best path forward., its U.S. same-store sales fell by 6% year-over-year, while overall in-store transactions fell by 10%.
“While our efficiency efforts continued to produce according to plan, they were not enough to outpace the impact of the decline in traffic,” Rachel Ruggeri, the chief financial officer of Starbucks, added. “We are developing a plan to turn around our business, but it will take time. We want to amplify our confidence in the business and provide some certainty as we drive our turnaround."
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