Starbucks reported its third consecutive quarter of declining gross sales within the U.S. on Wednesday.
To show issues round, Starbucks’ new CEO, Brian Niccol, is making some adjustments to the corporate’s menu, environment, and customer support, together with eradicating olive oil coffee drinks and not charging extra for non-dairy milk as of November 7.
Starbucks is now additionally shopping for 200,000 Sharpie markers for near 17,000 areas within the U.S. in order that workers can write the names of consumers or personalised messages on cups.
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“It will give them the chance to place that extra human contact on each espresso expertise,” Niccol mentioned on Starbucks’ Q4 earnings call on Wednesday.
Brian Niccol. Credit score: Robin Marchant/Getty Photos
Different adjustments embrace providing clients who keep to drink espresso the selection of a ceramic mug, and bringing again the condiment bar by early subsequent 12 months so clients can put milk and sugar of their espresso on their very own.
The purpose is to make Starbucks really feel extra like a “third place” or a website the place individuals wish to sit down — so comfy seating and redesigned layouts will make an look at Starbucks too within the coming months.
“We’re reclaiming the third place so our cafes really feel just like the welcoming espresso home our clients bear in mind,” Niccol mentioned on the earnings name.
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These adjustments observe what Niccol referred to as a “very disappointing” quarter for Starbucks. Income was down 3% from the identical time final 12 months, hitting $9.1 billion, and foot visitors to shops declined, particularly within the afternoon. A 6% drop in U.S. gross sales drove the majority of the income decline.
Niccol acknowledged that with a purpose to make a comeback, Starbucks must return to its roots.
“We have now to get again to what has all the time set Starbucks aside,” he mentioned. “A welcoming espresso home the place individuals collect and the place we serve the best espresso handcrafted by our expert baristas.”
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