Starbucks CEO: Coffee Giant’s Turnaround Effort Progressing Faster Than Expected After One Year

Starbucks CEO Brian Niccol has said Starbucks turnaround plan to reboot the coffee chain are on track and in some cases early, but there is a lot more work to do. Niccol, who just wrapped up his first year in the top job, is banking on a new store design, an updated rewards programme, and a menu overhaul to Starbucks growth and boost customer traffic.

“The next phase is about expansion, and I do see the opportunities,” he told FOX Business in an interview Monday. “We’re going to be introducing some innovation on the food and beverage side, as well as with our rewards programme and digital innovations.”

Niccol’s first 12 months at the company have already proved to be a leadership litmus test. The Starbucks CEO update, which is replaced a short-tenured David Hopkins in March of 2023, is now Starbucks’ third chief executive in just two years. He is charged with moving a brand that’s faced widespread unionisation, declining customer traffic and sales, and less-than-stellar financial results.

“I’m not new to this type of challenge,” he said. “In fact, my career has been built on this type of work.”

Niccol, a former Taco Bell and Chipotle executive, helped lead successful turnarounds at each chain. In the U.S., Starbucks locations have seen lighter foot traffic, as consumers have trimmed discretionary spending, but Niccol said coffee chain recovery has been happening ahead of schedule. He’s moved up the roll-out of a protein-forward menu coming to market at the end of September, and has already rolled out the “Green Apron Service” model, which is designed to make ordering through the mobile app, drive-thru and in-store pickups easier, better, and faster for customers.

The numbers so far, Niccol said, show promise. Since the launch of a redesigned store model just a few weeks ago, 80% of drinks are being made in less than four minutes. Pre-orders on mobile are even better, with more than 95% of transactions hitting that four-minute target, which Niccol says is a critical mark he set just weeks into his tenure.