New Starbucks CEO Brian Niccol is focusing on improving the chain’s U.S. business in his first 100 days on the job before addressing issues abroad. In an open letter to customers, employees, and stakeholders, Niccol acknowledged areas that need improvement, such as the barista experience, morning service, cafes, and branding. The company plans to invest in technology to enhance the barista and customer experience, streamline the supply chain, and upgrade its app and mobile ordering system. Niccol will initially concentrate on these improvements in the U.S. before shifting his focus to international markets like China, where Starbucks has struggled to recover from the pandemic and faces increased competition.
In China, the company aims to understand how to capture growth and leverage its strengths in the market. Starbucks has also faced challenges in the Middle East due to perceived misconceptions about its brand. Niccol plans to address these issues once he has addressed the key areas for improvement in the U.S. market. For his first 100 days, Niccol plans to spend time in Starbucks cafes and offices, as well as meeting with key suppliers, to better understand the challenges and opportunities facing the company.
Niccol officially joined Starbucks as CEO in August, following the ouster of former CEO Laxman Narasimhan. The leadership change came after several quarters of declining sales for Starbucks, particularly in the U.S. and China. Niccol previously served as the CEO of Chipotle Mexican Grill, where he successfully led a turnaround for the troubled fast-food chain. His experience in transforming Chipotle into a favorite of both diners and Wall Street has positioned him to execute a similar strategy for Starbucks.
In his open letter, Niccol emphasized his commitment to getting Starbucks back on track, starting with a focus on the U.S. market. He plans to use his time in the first 100 days to address key areas for improvement and enhance the overall customer experience. By investing in technology, streamlining operations, and strengthening its brand, Starbucks aims to regain its competitive edge in the highly competitive coffee market. Niccol’s leadership and strategic vision will be essential in guiding Starbucks through this crucial period of transformation and growth.
