Brian Niccol laid out his vision for his first 100 days as the CEO of Starbucks on Tuesday, promising improvements to both operations and marketing while vowing to “get back to what makes Starbucks, Starbucks.”
In an open letter to Starbucks employees, customers and stakeholders one day after he officially became its chief executive, Niccol said he is a “long-time customer” of the brand and said he has already spent time inside stores talking with employees and customers.
He said that the company has lost some of what has made the brand special, notably its status as a “community center” as its shops focus more on getting large numbers of customers in and out.
“Many of our customers still experience this magic every day,” Niccol wrote. “But in some places—especially in the U.S.—we aren’t always delivering. 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.”
“Today, I’m making a commitment,” he added. “We’re getting back to Starbucks.”
Niccol’s hiring was announced last month and comes at a crucial time for the Seattle-based company, which is experiencing its worst year since the Great Recession. Sales in both the U.S. and China, the chain’s two biggest markets, have been surprisingly weak.
The company lured Niccol away from Chipotle Mexican Grill, giving him the chairman title, a handsome pay package and funding his commutes to Seattle from his home in Southern California—though Niccol is expected to eventually get some housing closer to corporate headquarters.
His tenure will be closely watched, given Starbucks’ size and overall influence. Niccol’s plan for his first 100 days on the job will be mostly in the U.S.
Niccol listed four key areas that will have the biggest impact in the next 100 days: Empowering baristas to take care of customers; improving service in the morning; reestablishing Starbucks as the community coffeehouse; and “telling our story.”
On empowering the company’s baristas, Niccol said that the employees need “the tools and time to craft great drinks every time, delivered personally to each customer.” He said the company plans to make “Starbucks the best place to work, with career opportunities and a clear path to growth.”
Service in the morning, meanwhile, has been a key problem as the company’s popular mobile ordering app creates backups inside shops or the chain’s drive-thrus. “People start their day with us, and we need to meet their expectations,” Niccol said. “This means delivering outstanding drinks and food, on time, every time.”
Reestablishing Starbucks as a community coffeehouse is another key goal. Starbucks was built as a “third place” between work and home where people meet friends or business associates or do their homework.
Niccol is promising to elevate the in-store experience. “Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between ‘to-go’ and ‘for-here’ service,” he said.
Marketing also appears to be one area Niccol wants to improve. “It’s time for us to tell our story again—reminding people of our unmatched coffee expertise, our role in communities and the special experience that only Starbucks can provide,” he said.
“We won’t let others define who we are.”
Most of Starbucks’ sales and traffic problems in the U.S. since November—when those sales problems first appeared—have been with “occasional” customers.
Boycotts of the brand, over the company’s alleged views on the Middle East conflict or its relationship with unionized workers, have apparently had some impact on some customers’ views of the brand.
Niccol clearly wants to change the narrative, something he did to great effect when he took the CEO job at Chipotle in 2018.
Niccol said the company is making investments in technology to improve the experience of employees and customers and its supply chain. He also said the company plans to evolve its mobile app and its ordering plan.
While much of the letter’s focus was on the U.S., Niccol also acknowledged that Starbucks is a global company that operates in 87 markets.
The biggest challenge among those markets is China, where sales have fallen precipitously in the past several months as the market is beset by rapidly growing local competitors that are offering low-priced coffee drinks.
“In China, we need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market,” he said. He added that the company has “enormous potential for growth” internationally outside of China, including the Middle East, “where we’ll work to dispel misconceptions about our brand.”
Niccol also noted that Starbucks was founded on a love for coffee, suggesting the company will make coffee central to what it does.
He referred to the company’s coffee farm in Costa Rica and its network of farmer support centers where the company shares its research. And he also noted the company’s roasting facilities and its Starbucks Reserve Roasteries in Milan, Shanghai, Tokyo, New York City, Chicago and Seattle.
“Coffee is our heart,” Niccol said. “Each cup is more than a drink. It’s a handcrafted moment, made with care.”
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