Why did CEO Brian Niccol announce a 30% menu cut for Starbucks? Reasons explained

Starbucks has always remained a historical favorite among various age groups, particularly the millennials and Gen Z.

The coffee chain recently announced its resolve to reduce approximately 30% of its menu items to address operational challenges and enhance customer experience.

During a Starbucks earnings call on January 28, 2025, CEO Brian Niccol announced the recent developments in the company, saying,

"In the coming months, you’ll see us begin to optimize our menu offerings, resulting in roughly 30% reduction in both beverages and food.”

But he didn’t name the specific items which will be soon removed from its menu.

“It’s a little bit of everything is how I would describe it,” Niccol said. “Really what we focused on is what are the items that are not, frankly, selling a lot every day?” He added.

Ever since Niccol took charge of Starbucks as its CEO, the coffee chain has undergone several changes that fall under his mission to return to “coffeehouse community roots.”

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What are the changes Starbucks has undergone since CEO Brian Niccol took charge?

On January 27, 2025, the coffee chain announced that it will be offering free refills and will be bringing back condiment bars. This will allow the customers to personalize their beverage by adding creamers, sweeteners and milk as per their liking. The practice was removed during the pandemic days to minimize contact.

On choosing the “free refill” option, customers would be able to enjoy their drinks in ceramic mugs, glasses, or personal cups which could be refilled on request. The offer applies to hot brewed or iced coffee, or hot or iced tea during their visit to the store.

In another change, Starbucks reversed its open-door policy in January 2025. Under this policy, the coffee chain allowed anyone to lounge in its cafes and use its restrooms without a purchase. It was instated in 2018 when two Black men were arrested for trespassing in Philadelphia Starbucks.

Spokesperson for Starbucks, Jaci Anderson told AP, “We want everyone to feel welcome and comfortable in our stores,” she said.

The policy change is also posted on Starbucks’ website. It says:

“We want to ensure our spaces are prioritized for use by our customers. Our Coffeehouse Code of Conduct is something most retailers have and is designed to provide clarity that our spaces – including our cafes, patios and restrooms – are for use by customers and partners.”

It added,

“The code of conduct is displayed in our stores to remind customers of the role they play in creating a community coffeehouse that is inviting and welcoming.”

In October 2024, the chain announced that it would reduce the frequency of discounts and promotions. According to a report by CNN, the move was a part of Niccol’s strategy to reposition Starbucks as a premium brand and to reduce the strain on employees who are overburdened with work during promotional offers.

According to Niccol, the strategy is,

“just making a couple of powerful choices, and then we’ve got to execute like crazy,”

Later in October, the chain announced that it would not upcharge its customers for non-dairy milk. Thus, with this move almost half of its customers have to pay 10% less for their drink.

Moreover, Starbucks reportedly eliminated its olive oil-infused drinks from the menu. In January 2025, it reintroduced its pistachio drinks with limited-edition beverages like Pistachio Latte and Pistachio Cream Cold Brew. It also introduced the Dubai Matcha Drink, following the success of its new matcha tea options.