'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Nov 01, 2024 01:08 AM - 1 week ago 15602

Starbucks reported its third consecutive quarter of declining income successful the U.S. connected Wednesday.

To move things around, Starbucks' new CEO, Brian Niccol, is making immoderate changes to the company's menu, atmosphere, and customer service, including removing olive lipid java drinks and not charging other for non-dairy milk arsenic of November 7.

Starbucks is now besides buying 200,000 Sharpie markers for adjacent to 17,000 locations successful the U.S. truthful that labor tin constitute the names of customers aliases personalized messages connected cups.

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"It's going to springiness them the opportunity to put that further quality touch connected each java experience," Niccol said connected Starbucks' Q4 net call connected Wednesday.

Brian Niccol. Credit: Robin Marchant/Getty Images

Other changes see offering customers who enactment to portion java the prime of a ceramic mug, and bringing backmost the condiment barroom by early adjacent twelvemonth truthful customers tin put beverage and sweetener successful their java connected their own.

The extremity is to make Starbucks consciousness much for illustration a "third place" aliases a tract wherever group want to beryllium down — truthful comfortable seating and redesigned layouts will make an quality astatine Starbucks excessively successful the coming months.

"We're reclaiming the 3rd spot truthful our cafes consciousness for illustration the welcoming java location our customers remember," Niccol said connected the net call.

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These changes travel what Niccol called a "very disappointing" 4th for Starbucks. Revenue was down 3% from the aforesaid clip past year, hitting $9.1 billion, and ft postulation to stores declined, particularly successful the afternoon. A 6% driblet successful U.S. income drove the bulk of the gross decline.

Niccol stated that successful bid to make a comeback, Starbucks would person to spell backmost to its roots.

"We person to get backmost to what has ever group Starbucks apart," he said. "A welcoming java location wherever group stitchery and wherever we service the finest java handcrafted by our skilled baristas."

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