Starbucks is rolling out new ideas to make its stores more inviting to customers and recapture some of the “vibe” from its early days.
At Wednesday’s meeting of shareholders, new Starbucks CEO Brian Niccol announced the coffee giant would expand its in-store seating options and increase the availability of power charging outlets, according to Bloomberg.
“We’re working hard to ensure our coffeehouses have the right vibe…we want to invite customers in, showcase our great coffee, provide a comfortable place to stay, and make them feel like their visit was time well spent,” Niccol told investors.
Niccol, 50, took the helm of Starbucks six months ago and has been swift to roll out changes to reverse slumping sales. Among them, he has simplified its menu by ditching low-performing drinks, set a four-minute goal for fulfilling orders, stopped charging extra for using non-dairy beverages in its drinks and brought back ceramic mugs for in-store customers.
“We have a clear path forward. This path is grounded in reconnecting with who we are when we’re at our best,” Niccol said. “We call it ‘Back to Starbucks.’ It’s about focusing on our brand truths and the role we play in the lives of our customers and our partners and communities. It’s about getting those fundamentals right and then building and innovating from there.”
In the first quarter of fiscal year 2025, Starbucks reported net revenue of $9.39 billion, slightly down from $9.42 billion in the same quarter of the previous year. Net earnings for the quarter were $780.8 million – a 23.8% decline from $1.02 billion a year earlier.
Last month, Niccol announced plans to lay off 1,100 corporate employees and eliminate hundreds of unfilled positions.