The new chief executive officer of Starbucks, Brian Niccol pledged to simplify the company’s menu and correct issues responsible for a sales drop. This is from the challenges that Starbucks is facing, primarily cost burden and massive competition in China, where sales fell by 14%. During the period, the company’s global sales were down by 7% between July and September 2024.
According to him, the company has to move forward with regards to customer experience, making the menu easier as well as look at areas of bottlenecks by mobile orders. Second, Niccol shall look into the pricing structures. His goal for Starbucks would be that it becomes more efficient and value is attained by every visit of customers. It also stabilizes the staffing shortages and quicker service during peak hours.
But the external pressures Starbucks is also under are caused by backlash associated with the Israel-Gaza conflict and a US union battle. Controversy ensued over a post by a US baristas’ union that declared support for Palestine, complicating the brand’s public image at times of unrest.
Niccol’s approach at Starbucks is to restore it to its original products but with the handling of the operational as well as reputational problems that the company will be able to bounce back on its performance in all areas of the global market.