Coffeehouse company Starbucks seems to be turning a blind eye to inflation for a while. In a recent interview with ABC, CEO Brian Niccol informed that changes are expected from the food company in the coming days. Niccol has a reputation for turning things around in his former company, Chipotle, and plans to do the same at the coffee giant, too.
The new CEO plans to reclaim Starbucks' former glory after a year of slumping sales and customer dissatisfaction. Customers have previously complained regarding the cost of drinks and the waiting time to get one’s order.
After Brian Niccol took charge as the CEO in September 2024, he decided to turn over every detail. However, these changes are not likely to come at a higher cost.
He mentioned he wanted to ensure transparency in terms of pricing. Business correspondent Rebecca Jarvis informed Niccol that Chipotle had hiked prices by 2%. She asked whether a similar strategy would be followed at Starbucks or not, to which the CEO replied,
“We are gonna hit the pause on any pricing for this fiscal year. I still think there is an opportunity for us to simplify the pricing architecture. I don’t love the fact that in our app right now while you are doing this customization, it doesn’t inform you what has happened to the price.”
As per ABC, the foremost change he brought was the removal of extra charges for non-dairy milk, which started on November 7, 2024. However, when Rebecca Jarvis asked what other changes could be expected, he said the company was working to bring back the Sharpie markers in addition to the coffee condiment bar.
How is Starbucks working towards improving customer experience?
Niccol said Starbucks is pushing towards a seamless customer experience in getting one’s coffee. This attempt would further help simplify the execution of the baristas. Nevertheless, the changes are not only limited to the basics. Niccol said he is also working to improve the in-store ordering, like getting the espresso ready in less than four minutes.
Starbucks is also working to improve customers' experience with app and mobile ordering. Regarding the progress, Niccol said,
“So, we are right now investing in how do we build the technology so that when a mobile order comes in, we basically give you a time that your drink will be ready. So, today, we just kind of give you an estimate ‘Hey, it will be ready in three to five minutes.’”
He further added,
“In the future what will happen is we will be like ‘Rebecca, your drink will be ready at 9 instead of it just being made sitting on the counter waiting for people to come.”
Starbucks is also looking forward to a smaller menu, which means it would have to eliminate less popular items so that customers can get their coffee faster, as many offerings are ordered less frequently in a day.
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Niccol also stated that none of the innovative approaches would mean a decline in quality. Five years from now, he said customers would see Starbucks as an orderly mobile order business with a dedicated pickup area. He hoped to give customers a brewed cup of coffee in less than 30 seconds.
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