STARBUCKS CEO has revealed three “aggressive” changes set to hit all 16,941 stores next year.
Brian Niccol, who took the helm a year ago, said the coffee giant is “ahead of schedule” in its ambitious turnaround plan.
Brian Niccol became CEO of Starbucks a year ago[/caption]
Known for revitalising Taco Bell and Chipotle, Niccol became Starbucks‘ third CEO in two years, stepping in as the company struggled with disappointing fiscal quarters and declining footfall.
Menu changes
The first major shift is on the menu, with new drinks and food items already rolling out.
The company wants to improve its food offerings, introducing more variety in “breakfast sandwiches, afternoon snacks and real biteable” options, Niccol told FOX Business on Monday.
A new protein-packed menu will hit stores by the end of September.
“Obviously on trend right now is more snackable, protein-forward, some gluten-free products, so I am really excited about what we can do on the food front as well,” he added.
Digital changes
The second big change that the company has introduced is digital.
Starbucks recently rolled out its Green Apron Service model, which uses Smart Queue technology to manage orders across mobile pickup, drive-thru and café.
So far, it’s been a success, with 80 per cent of Starbucks drinks now ready in under four minutes – up from 60 per cent before the rollout, according to Niccol.
Meanwhile, 95 per cent of mobile orders are prepared within four minutes.
New store design
Finally, Niccol said Starbucks is getting “a lot more aggressive” with revamping its coffeehouses, aiming to redesign thousands of locations across the country through 2026.
With over 17,000 U.S. stores, the new look will feature a mix of oversized chairs, couches, high-tops and regular tables to offer “a seat for every occasion”.
The chain is also downsizing its stores to be more cost-effective.
“We were making the buildings too big. We’re putting in unnecessary equipment,” Niccol said.
“When, in fact, what we really needed to do was have a great coffee house with some great seats, staff with the right number of partners, and then set them up with the rate number of labor hours so that they can be in the right position at the right time for those customers.”
He added the redesign will ultimately make stores cheaper to run and more efficient.
Starbucks also plans to upgrade its rewards program, with a new version rolling out in early 2026.
Discussing Starbucks’ progress so far, Niccol said: “I stand by the fact that we’re ahead of schedule, and I’m excited about finishing out this fiscal year really strong and heading into 2026 from a position of strength.”
