Starbucks Chief Executive Brian Niccol announced Tuesday that the Seattle-based coffee chain needs to "fundamentally change" its strategy after the company's sales fell again this quarter.
Amid talks of turnaround, with recent news of scaling back promotions and discounts to refocus on creating a more premium brand offering, the former Chipotle CEO said these preliminary fourth quarter and fiscal year-end financial results are a signal for a company reset.
"We must ensure our baristas have the time and tools they need to provide exceptional customer service, and that they are supported by strong leaders and managers across every store," Niccol said in a pre-recorded video. "Every person at Starbucks must work harder to support our retail teams, moving faster to respond to their feedback and get them what they need. Our green apron partners want to provide exceptional service to our customers. And as leaders, we need to remove those things that might stop them from doing that."
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Niccol, who previously dealt with a unionizing workforce at the fast casual Mexican chain, emphasized an importance for bettering opportunities for its baristas. Nearly 500 Starbucks stores are currently unionized.
"We’ll also build on our legacy by making Starbucks the best job in retail, offering our baristas meaningful career growth and industry-leading benefits, like the opportunity for U.S. partners to earn a free four-year college degree," he said.
He also stressed the goal to reestablish Starbucks as a "community coffeehouse" so that customers feel there are amenities they would expect from Starbucks stores, even if the intention is not to "stay in the café each time they visit."
In the effort to "reintroduce Starbucks to the world," Niccol said that the chain will plan to simplify its "overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it."
