Starbucks chief shakes up menu to draw customers back
Starbucks’ new CEO has vowed to simplify the chain’s “overly complex menu” in a bid to win back customers and boost declining sales. Brian Niccol emphasized the need for fundamental changes and indicated that a pricing review is on the horizon.
Recent figures show that customers have been reducing their spending amid rising living costs, particularly in China, where sales have dropped by 14% from July to September. Niccol acknowledged operational challenges, including staffing shortages and customer bottlenecks, while the company has not confirmed whether the menu and pricing adjustments will extend to the UK.
Global sales fell by 7% during the same period, and Starbucks’ finance chief, Rachel Ruggeri, noted that despite increased investments, the decline in customer traffic persists. She had previously mentioned signs of recovery.
To revitalize sales, Niccol promised to “get back to Starbucks,” aiming to simplify the menu and refine the mobile ordering process to enhance the café experience. Fund manager Randeep Somel suggested that a streamlined menu could reduce wait times during peak hours.
Criticism has arisen regarding Niccol’s plan to travel nearly 1,000 miles from his home in California to Seattle on a corporate jet, seen as contradictory to the company’s environmental stance.
Starbucks is set to release full financial results next week, with shares dropping 4% recently as the company suspended its financial forecasts for the upcoming year.
Former CEO Laxman Narasimhan, who left after a brief tenure, had attempted to refresh the menu with new items and faster service before his departure. The company is also dealing with social media backlash linked to the Israel-Gaza conflict and internal union protests, leading to further complications in its public image. Starbucks has stated its official position condemns violence in the region, distancing itself from the union’s unauthorized messages.
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