Starbucks CEO Brian Niccol has revealed plans to cut a whopping 30% of its menu offering in 2025.
In an earnings conference call in January, Niccol also confirmed the chain would double its store footprint in the US by the end of the year.
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The changes come as the brand implements its “Back to Starbucks” strategy which includes a stronger focus on coffee quality, customer experience and community with initiatives like simplified menus, faster service and improved store experience.
The turnaround is being implemented in a bid to improve the company’s dwindling sales and financial results.
“Over coming months we will begin to optimize our menu offerings, resulting in roughly 30% reduction in both beverages and food skews by end of fiscal year,” Niccol told investors in January.
“This means we can sell more of our core beverages by demonstrating our premium value, a key part of the premium value we provide and consistently delivering a high quality, hand crafted beverage.”
Speaking to investors, Niccol said the company had also reduced the frequency of discounts offered to customers.
This has resulted in 40% fewer discounted transactions compared to last year, he said.
‘VIBE’ IMPROVING
Niccol also spoke on plans to deploy digital menu boards across all US stores across the next 18 months to “make our offerings more easily understood”.
Also, the chain will overhaul its app in the middle of this year, allowing customers to customize orders more clearly.
Some changes shoppers may see is updates to the price of their order in real time, and different features allowing them to schedule mobile orders.
Niccol said the “vibe” of the coffee houses had already improved for both customers looking to relax but also those picking up a coffee on the go.
“We’ve made strides to re-establish Starbucks as the community coffee house to make it easier for our customers to enjoy a cup of coffee their way,” Niccol said.
“This is a spot where I can slow down, take a minute.
“Our work to reintroduce the brand had “just begun” but our core business is already strengthened, demonstrating that when we talk about our business, customers respond.”
Starbucks has faced criticism from fans in recent times, with reports some shoppers were waiting up to 40 minutes for coffee.
Baristas told The New York Post that staffing cuts had left them overworked and unable to juggle the barrage of orders that come through mobile apps, in store and drive-thru.
DOWN TO JUST 4 MINUTES
Niccol, who took the role in December, pledged to cut coffee wait times down to just four minutes.
He admitted the company needed to get faster at fulfilling orders.
“We want to hand deliver a high-quality handcrafted beverage to our café customers in four minutes or less,” Niccol said in December.
The company also made a major U-turn earlier this year after reversing a seven year policy of allowing customers to hang out in their cafes without making a purchase.
The change was made under a new Code of Conduct, which has been introduced to improve store environments.
The U.S. Sun also reported in January that Starbucks was testing out a new algorithm to improve order efficiency and wait times.
