New directions from Starbucks CEO Brian Niccol

One day into his new job as Starbucks CEO, Brian Niccol is already beginning to set a tone for his stewardship.

“First, Starbucks is a beloved brand with wonderful people. We are woven into the fabric of people’s lives and the communities we serve,” Niccol wrote in a post on the company’s website. “Second, 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.”

While Niccol wasn’t completely clear what Starbucks has drifted to, he did say he would be focusing on U.S. stores in his first 100 days.

“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,” Niccol explained.

Starbucks stock closed Tuesday at $93.44. The past year saw a high of $107.66 with a low of $71.55. Starbucks revenue missed estimates as same-store sales declined for second straight quarter at the end of July. Still, the results weren’t as bad as some analysts had feared.

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At the same time in an unscientific poll taken by MyNorthwest this week, customers cited prices as a reason that they didn’t like Starbucks as much as they used to. 77% of respondents checked off the “$8 for a pumpkin spice latte. No thanks.” answer.

With nearly 40,000 stores globally, Starbucks’ premium prices deter some customers seeking a quick caffeine fix. Analysts note that even convenience stores like Wawa offer quality coffee, while high-end consumers turn to independent cafes or upscale chains like Blue Bottle.

In the statement, Niccol said he had four priorities:

1. Empowering our baristas to take care of our customers: We’ll make sure our baristas have the tools and time to craft great drinks every time, delivered personally to each customer. For our partners, we’ll build on our tradition of leadership in retail by making Starbucks the best place to work, with career opportunities and a clear path to growth.
2. 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.
3. Reestablishing Starbucks as the community coffeehouse: We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks. Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between “to-go” and “for-here” service.
4. Telling our story: It’s time for us to tell our story again — reminding people of our unmatched coffee expertise, our role in communities and the special experience that only Starbucks can provide. We won’t let others define who we are.

“From a marketing perspective, Starbucks has really lost its way,” said Chris Kayes, a management professor at The George Washington University.

New drinks can confuse Starbucks’ messaging. Despite a 2018 pledge to eliminate single-use plastic straws by 2020, they returned this summer with new cold boba drinks. Starbucks claims the new straws are compostable, but the Ocean Conservancy argues many composting systems can’t handle them.

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As drinks become more complex, baristas face pressure to work faster. Nearly 75% of Starbucks orders now come through mobile apps, drive-thrus, or delivery partners, reducing in-store lingering.

Michelle Eisen, a barista and union organizer in Buffalo, New York, said her store has lost its relaxed vibe. Despite new brewing machines, staffing levels have stagnated or declined.

“They’re adding channels but not the bodies needed to keep up,” she said.

Starbucks lags behind rivals in service times. A Technomic survey found 77% of Caribou Coffee customers received their orders in five minutes or less, compared to 62% at Starbucks.

Niccol’s challenge is significant, with Starbucks facing diverse global issues, including low-cost competitors in China and boycotts in the Middle East. However, the board believes in his ability to lead. Niccol’s contract could earn him over $100 million in his first year, despite commuting from California to Seattle by corporate jet, seemingly contradicting Starbucks’ carbon reduction goals.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.