In his first public comments as Starbucks’ new CEO, Brian Niccol published an open letter Tuesday laying out his initial plan to help the Seattle coffee giant curb slumping sales and boost its brand.
The former Chipotle CEO officially started his new gig this week, but he’s already spent the past few weeks meeting with key stakeholders.
In his letter, Niccol referenced recent criticism over Starbucks’ overwhelming menus and long wait times, writing that “there’s a shared sense that we have drifted from our core.”
“We have an opportunity to make the store experience better for our partners and, in turn, for our customers,” he wrote.
Niccol, who was named CEO last month, said the company will invest in technology “that enhance the partner and customer experience, improve our supply chain and evolve our app and mobile ordering platform.”
As we reported Monday, one area to watch closely is how Niccol changes the company’s mobile ordering system.
The app drives about a third of transactions at U.S. company-operated stores. But it has become somewhat of a sore spot due to inaccurate wait times and the congestion it creates inside stores — both for those trying to pick up their mobile orders, and people ordering at the store itself.
Niccol helped Chipotle innovate with its digital ordering system, creating a second cooking area in the back of restaurants focused exclusively on online orders, while also adding a new computer system that surfaced those orders.
Niccol, a self-described long-time Starbucks customer, said the company needs to “get the morning right, every morning.”
“People start their day with us, and we need to meet their expectations. This means delivering outstanding drinks and food, on time, every time,” he wrote.
Niccol also said he wants to reestablish Starbucks as the “community coffeehouse” with a “clear distinction between ‘to-go’ and ‘for-here’ service.”
That indicates Niccol wants to try to thread the needle and serve both customer segments: those that want to pick up and go, and those who want to enjoy their coffee inside stores.
Former longtime Starbucks CEO Howard Schultz famously championed the “third place” concept for Starbucks, the idea that the company’s coffee shops were a community gathering spot, away from home and work.
Niccol wrote that he wants stores to “be inviting places to linger” with “comfortable seating and thoughtful design.”
“Our stores have always been more than a place to get a drink,” he said. “They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista. A visit to Starbucks is about connection and joy, and of course great coffee.”
Niccol said he’ll first focus on the U.S. before addressing the company’s stores abroad, including China, where Starbucks is struggling.
Niccol said he wants to “get back to what makes Starbucks, Starbucks.”
“We’re refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas,” he wrote. “This is our enduring identity. We will innovate from here.”
https://ift.tt/spwc0oF September 10, 2024 at 05:09PM GeekWire
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