Why Your Favorite Starbucks Drink May Soon Be Gone
Adieu, olive oil latte!
Your Starbucks order could be changing very soon.
In October, Starbucks reported its preliminary fourth-quarter net revenue at $9.1 billion, marking a 3% year-over-year drop. It's also the third quarter in a row that the coffee giant has experienced a decrease in revenue. And that's something Brian Niccol, the company's new CEO, wants to address by streamlining operations — including the chain's complex menu.
"People love Starbucks, but I’ve heard from some customers that we've drifted from our core, that we’ve made it harder to be a customer than it should be, and that we’ve stopped communicating with them," Niccol shared in a prerecorded video uploaded to the Starbucks website. "To welcome all our customers back and return to growth, we need to fundamentally change our recent strategy." He added that the "Back to Starbucks" plan will be that "fundamental change."
According to Niccol, who came over from Chipotle, the company will work to get back to its "core identity" to ensure customers keep coming back. "To succeed, we need to address staffing in our stores, remove bottlenecks, and simplify things for our baristas," he said. "We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit."
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