Starbucks CEO Vows to Simplify ‘Overly Complex Menu’ and Revamp Pricing to Reverse Sales Slump

preCharge News BUSINESS — Starbucks CEO Brian Niccol, in a bold move to reverse slumping sales, announced Tuesday that the company plans to simplify its “overly complex menu” and address its pricing strategy in a bid to win back customers. In a video message, Niccol acknowledged that Starbucks’ fourth-quarter results reveal a troubling trend—customers are visiting less often, leading to a sharp decline in revenue.

“To welcome all our customers back and return to growth, we need to fundamentally change our recent strategy,” Niccol said, adding that a key part of this shift includes overhauling the company’s menu and pricing. “We need to make sure every customer feels Starbucks is worth it.”

STARBUCKS CEO FULL MESSAGE VIDEO:

Niccol, who joined Starbucks after his tenure as CEO of Chipotle, faces the challenge of addressing declining customer traffic and a U.S. sales dip. He also plans to tackle operational inefficiencies, particularly at the store level, which has long been a source of frustration for both employees and customers. The CEO acknowledged that staffing issues, combined with a complicated menu, have created bottlenecks for baristas, slowing down service.

In his statement, Niccol explained that Starbucks’ recent focus on its Starbucks Rewards loyalty program had come at the expense of broader customer engagement, and that the company needs to “fundamentally change our marketing” to reach all patrons, not just those in the rewards program.

Another major area of focus is refining the company’s mobile order and pay system, which Niccol says has, in some cases, overwhelmed the in-store experience. He emphasized the need for a more balanced approach to mobile orders, ensuring they don’t disrupt the overall café atmosphere. “We know how to make these improvements, and when we do, we know customers will visit more often,” he added.

(Starbucks / Getty Images)

Starbucks’ preliminary earnings report for the quarter ending September 29th showed a 7% decline in same-store sales, with North American revenues experiencing notable softness. U.S. stores saw a 6% drop in comparable sales and a staggering 10% decrease in customer transactions.

Niccol, in his plan to restore the company’s U.S. operations, has set a 100-day framework for turning things around. His strategy includes enhancing store comfort, improving operational efficiency, and boosting workforce morale. Central to this effort is ensuring that drinks and food are prepared on time while making Starbucks stores more inviting for both to-go customers and those who want to stay and enjoy the café atmosphere.Subscribe

A key component of Niccol’s vision for the future of Starbucks is enhancing the customer experience. This includes creating a better distinction between “to-go” and “for-here” services and ensuring more comfortable seating so customers are encouraged to linger. His focus is on streamlining operations while making Starbucks stores feel more welcoming and efficient.

As Niccol lays the groundwork for these changes, he’s betting that a simpler, more customer-friendly experience will help revive Starbucks’ standing as the go-to destination for coffee lovers. The company is optimistic that these strategic shifts will lead to a steady rebound in sales and restore its competitive edge in the crowded coffee market.