Rob Lenihan
4 min read
In This Article:
Starbucks service plan prompts surprising analyst stock-price-target revisions originally appeared on TheStreet.
Have a seat and let Brian Niccol tell you all about his big ideas for Starbucks (SBUX) .
Actually, seats are a part of the "Back to Starbucks" plan as the chief executive of the world's largest coffee chain looks to turn around a decline in foot traffic and sales.
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Niccol, who joined from Chipotle in September, said that pulling back on in-store seating was one of the company's biggest missteps, and he wants to fix that.
"We had this strategy that I think was just a misfire of a purpose-driven store. It's like, well, the purpose is community connection," Niccol told Axios. "I think that's what got us off our game. We've got to get the seats back."
Niccol made his comments during the company's Leadership Experience in Las Vegas, where Starbucks hosted more than 14,000 store managers.
"It's time for us to lead again," Niccol told the crowd. "We’re going to lead in warm, welcoming coffee houses. We’re going to lead in innovation. Innovation to our menu."
In the past several months Starbucks reintroduced condiment bars and ceramic mugs for in-house sipping, brought back handwritten notes on to-go cups and bags to foster better customer-barista connections, and returned free in-café refills to make its coffee shops feel more like homes.
The Seattle coffee giant also refreshed and simplified its menu, discontinuing 13 items and eliminating extra charges for milk alternatives. In addition, the company plans to add full-time assistant managers across the U.S. to help busy stores run more smoothly.
Former Starbucks CEO Howard Schultz reportedly was so thrilled with the strategy that he "did a cartwheel in my living room" the first time he heard about it.
"It was so brilliant. It's short, to the point and it's exactly to the tip of the spear who we should be and who we are," Schultz said. "And we are, above all else, a coffee company."
Related: Starbucks makes huge investment to solve a key problem
Niccol told Reuters that he would accelerate the rollout of the coffeehouse chain's new staffing and service model, aiming for all North American stores by summer's end. The initial plan called for just a third of U.S. stores by fiscal year-end.
The Green Apron model includes in-store technology to more efficiently sequence orders, as well as dedicated baristas for drive-through orders. Starbucks initially rolled out the service changes to 700 stores.
