In an open letter published on Tuesday, new Starbucks CEO Brian Niccol has outlined new strategies with the sole intention of ending the slump of the chain.
Through his first days as Starbucks’ new chief executive, Brian Niccol outlined an ambitious agenda to turn around the ailing chain. First and foremost, his attention will be on the United States, then worldwide. He wants the company back at its roots as a community coffeehouse with improvements in customer experience and service—mostly because of technology and operational efficiency.
Depending on where he addresses each point, all of these could represent strategic segments for Niccol:
Improvement of the Barista Experience: The employees would be trained to improve the working conditions in order for the baristas to provide better service and give the customers better experiences.
Improvement in Morning Service: In accordance with the new proposal, operations would be organized in such a way that it could handle peak hours during morning services effectively and efficiently, cutting down the wait time for the customer.
Cafe Revitalization: The cafes would be totally redesigned to be more inviting and allow customers to stay longer.
Brand Refinement: Finally, measures would be taken to safeguard and preserve the Starbucks brand so that it acts closer to the spirit and ideals of its heritage.
He also aims to leverage technology to further streamline operations, especially related to mobile order and pay systems that have become such huge parts of the Starbucks business model. Technology development will include an enhanced Starbucks app, focusing on user experience and operational flow.
Internationally, Niccol aims to fix the challenges in China, the chain’s second-largest market, which has been tough competition and operated with difficulties since the pandemic.
In all, Niccol’s approach reflects great insight into the problems currently besetting Starbucks and a determination to apply his past experience in achieving a dramatic turnaround at Chipotle to leading growth and recovery at Starbucks.
