7 ways Starbucks is trying to engineer a comeback

Francisco Velasquez
·4-min read
A Starbucks ad at the T-Mobile Park on June 30, 2024 in Seattle, Washington. - Image: Brandon Sloter (Getty Images)
A Starbucks ad at the T-Mobile Park on June 30, 2024 in Seattle, Washington. - Image: Brandon Sloter (Getty Images)

Starbucks (SBUX) is ready to brew changes under the leadership of CEO Brian Niccol, who emphasized during the company’s earnings call on Oct. 30 that he believes the coffee giant’s problems are fixable.

“Most of what we need to do is in our control,” Niccol stated, highlighting significant shifts in U.S. operations and a return to some beloved perks.

Following a disappointing quarter that missed Wall Street’s expectations and where sales dipped for the third consecutive quarter, Starbucks is set to overhaul its menu, operations, and brand identity. This effort coincides with a new corporate directive requiring employees to come into the office three-days a week or face potential termination.

We’ve compiled a list of the seven key strategies that Starbucks plans to employ. Let’s take a look.

Paring down the menu

Starbucks Coffee cup at Athens International Airport in Athens, Greece on March 17th, 2024. - Image: NurPhoto (Getty Images)
Starbucks Coffee cup at Athens International Airport in Athens, Greece on March 17th, 2024. - Image: NurPhoto (Getty Images)

In a bid to create a more focused experience, Starbucks will pare back its offerings, including by discontinuing olive-oil infused drinks such as the Oleato beverage starting Nov. 7. This shake-up “fits” into the company’s “standard course of business” of regularly updating its menu, particularly as it prepares for the launch of its holiday drinks, a company spokesperson told Quartz.

Fast tracking service, new options, and no pricing surprises

People pass outside a branch of the coffeehouse chain Starbucks on October 24, 2023 in London, England. - Image: Matt Cardy (Getty Images)
People pass outside a branch of the coffeehouse chain Starbucks on October 24, 2023 in London, England. - Image: Matt Cardy (Getty Images)

Niccol aims to deliver a high-quality coffee experience quickly, with the goal of serving beverages in under four minutes. Drinks will once again have names written on them, as baristas are equipped with Sharpies (NWL) (again). Customers will also have the option to sip their drinks from ceramic mugs. The chain plans to keep menu prices stable through fiscal 2025.

De-cluttering mobile orders

Mobile order and Uber Eats and Doordash delivery pick up area at Starbucks coffee shop, Queens, New York. - Image: Lindsey Nicholson/UCG/Universal Images Group (Getty Images)
Mobile order and Uber Eats and Doordash delivery pick up area at Starbucks coffee shop, Queens, New York. - Image: Lindsey Nicholson/UCG/Universal Images Group (Getty Images)

Starbucks plans to introduce “customization guardrails” to streamline the ordering process and ease overburdened baristas. The initiative will separate mobile order pickups from the traditional coffee experience, creating a smoother in-store experience.

Boost staffing

Baristas behind counter at a Charlotte, North Carolina, Starbucks Coffee. - Image: Jeffrey Greenberg/Universal Images Group (Getty Images)
Baristas behind counter at a Charlotte, North Carolina, Starbucks Coffee. - Image: Jeffrey Greenberg/Universal Images Group (Getty Images)

Starbucks says it is focusing on improving operations by optimizing staffing during peak hours and offering employees the option to work more hours. The company aims to promote from within for 90% of retail leadership roles. It also plans to hold a store manager conference in 2025 to support its “Back to Starbucks” plan. Starbucks has extensively fought employee-led efforts to unionize its stores, including by firing organizers and offering perks exclusively to non-unionized workers.

Cutting non-dairy milk charges

Barista Miguel Angel Martinez Sarmiento at a Starbucks pours milk into a can in Mexico City. - Image: picture alliance (Getty Images)
Barista Miguel Angel Martinez Sarmiento at a Starbucks pours milk into a can in Mexico City. - Image: picture alliance (Getty Images)

Beginning with the upcoming holiday launch on Nov. 7, Starbucks will eliminate the up-charge for non-dairy milk options in North America, making it cheaper for customers to customize their drinks. The modification could lead to price reduction of 10% or more for nearly half of customers who choose it.

Reviving coffee bars

Starbucks brown sugar sachets are seen in Starbucks Coffee in Krakow, Poland on November 4, 2022. - Image: Beata Zawrzel/NurPhoto (Getty Images)
Starbucks brown sugar sachets are seen in Starbucks Coffee in Krakow, Poland on November 4, 2022. - Image: Beata Zawrzel/NurPhoto (Getty Images)

Niccol announced the return of condiment bars and the addition of self-serve cold brew stations to improve customer experience and speed of service. Starbucks removed the condiment bars during the Covid-19 pandemic as a safety measure to reduce touch points and maintain hygiene. Additionally, the rollout of Clover Vertica Brewers at all its U.S. locations by the end of fiscal 2025 aims to enhance the quality of its brewed coffee.

Promoting through good ol’ fashion TV ads

Two men cross paths in front of an advertisement announcing the opening of a the second branch of the US coffee shop chain Starbucks 19 May 1999 in a Bangkok street. - Image: AFP PHOTO/Pornchai KITTIWONGSAKUL (Getty Images)
Two men cross paths in front of an advertisement announcing the opening of a the second branch of the US coffee shop chain Starbucks 19 May 1999 in a Bangkok street. - Image: AFP PHOTO/Pornchai KITTIWONGSAKUL (Getty Images)

Starbucks is turning to regular TV with a fresh batch of new liner advertisements aimed at engaging a broader audience beyond its loyal customer base. These ads will feature the efforts of agronomists (crop scientists), master roasters, and baristas whipping up beverages.

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