Roughly five months into his tenure running Starbucks, CEO Brian Niccol is “spearheading changes” to overhaul the business and improve the brand’s perception with consumers, reported the Wall Street Journal. Niccol reportedly told the Journal that fixing ineffective mobile ordering systems is his biggest challenge for turning around Starbucks in the U.S.
“Striking unpopular menu items and addressing customer wait times are also among the top things he is tackling inside U.S. cafes. He said restoring basic offerings like condiment bars is also critical,” wrote the WSJ.
Last month, Niccol pledged to reduce the chain’s food and drink options by 30% by this fall, “stirring up questions for customers over whether they are going to lose their favorite beverages,” the WSJ said.
The company is reportedly testing an algorithm to better sequence orders coming into a cafe based on when they should be made. Niccol also hopes to “crack the code on scheduled pickup times for mobile orders.” Niccol is also encouraging U.S. baristas to write short messages on customers’ to-go cups and bags. Last month, Starbucks asked baristas to resume the practice of writing on orders with markers, a practice that was disrupted during the Covid-19 pandemic and hadn’t routinely happened since, said the WSJ.
Starbucks also said it plans to lay off “1,100 corporate employees while not filling several hundred open positions, part of … Niccol’s effort to streamline operations,” according to the WSJ.
Niccol reportedly said in a message today that the cuts would remove corporate layers and duplications and would help the coffee company become more focused. Cafe workers wouldn’t be affected by the cuts, Starbucks said.
“We believe it’s a necessary change to position Starbucks for future success,” Niccol said.
Niccol also recently implemented a new ‘buy or leave’ code of conduct at its cafes across North America, aiming to improve guests’ and staff’s safety and experience. Included in the shift was a reversal of a nearly seven-year policy of allowing the general public to linger in the store or use the bathroom, regardless of whether they buy anything.