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Starbucks reported its third consecutive quarter of declining gross sales within the U.S. on Wednesday.
To show issues round, Starbucks’ new CEO, Brian Niccol, is making some modifications to the corporate’s menu, ambiance, and customer support, together with eradicating olive oil coffee drinks and not charging extra for non-dairy milk as of November 7.
Starbucks is now additionally shopping for 200,000 Sharpie markers for near 17,000 places within the U.S. in order that workers can write the names of shoppers or personalised messages on cups.
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“It will give them the chance to place that extra human contact on each espresso expertise,” Niccol mentioned on Starbucks’ Q4 earnings call on Wednesday.
Brian Niccol. Credit score: Robin Marchant/Getty Photos
Different modifications embody providing prospects who keep to drink espresso the selection of a ceramic mug, and bringing again the condiment bar by early subsequent yr so prospects can put milk and sugar of their espresso on their very own.
The objective is to make Starbucks really feel extra like a “third place” or a web site the place individuals wish to sit down — so comfy seating and redesigned layouts will make an look at Starbucks too within the coming months.
“We’re reclaiming the third place so our cafes really feel just like the welcoming espresso home our prospects keep in mind,” Niccol mentioned on the earnings name.
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These modifications observe what Niccol referred to as a “very disappointing” quarter for Starbucks. Income was down 3% from the identical time final yr, hitting $9.1 billion, and foot visitors to shops declined, particularly within the afternoon. A 6% drop in U.S. gross sales drove the majority of the income decline.
Niccol acknowledged that in an effort to make a comeback, Starbucks must return to its roots.
“Now we have to get again to what has at all times set Starbucks aside,” he mentioned. “A welcoming espresso home the place individuals collect and the place we serve the best espresso handcrafted by our expert baristas.”
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