Starbucks' new CEO wants to make Starbucks a coffee shop again

new York
CNN
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Starbucks is on the decline. Sales have been falling since the company transitioned from a traditional sit-down coffee shop to one where customers place their orders by phone and pick up a drink at the counter. The new CEO has a plan to fix the problem. And it starts with comfortable chairs.

On his second day as Starbucks CEO, Brian Niccol wrote in a letter to employees and customers that he wanted to return Starbucks to its roots as a “community coffee house,” with comfortable seating, attractive design and a clear distinction between “to-go” and “for-here” service.

“There is a general feeling that we have moved away from our core,” he said Tuesday. “We are committed to elevating the shopping experience – by ensuring our spaces reflect the sights, smells and sounds that define Starbucks.”

Niccol is considered the restaurant industry's “Mr. Fix-It,” having turned around Chipotle and Taco Bell. He will be Starbucks' fourth CEO in two years and takes the helm amid a slowdown in Starbucks' business and pressure from employees and investors.

Starbucks' sales have declined for two consecutive quarters. Some customers have expressed frustration over high prices, slow pickup of orders through the Starbucks app and poor food selection. The company, historically considered a progressive employer, has also seen a wave of unionization at its stores, stemming from frustration over working conditions, wages and benefits.

Starbucks is transforming itself from a primarily brick-and-mortar company to an online business. Orders through mobile apps and drive-thru stores account for more than 70% of Starbucks' sales at its approximately 9,500 company-owned stores in the United States.

In the letter, he said he had visited stores and spoken to employees and customers over the past few weeks. He acknowledged in his letter that in some stores, particularly in the US, “it can feel like a transaction, the menu is overwhelming, the product is inconsistent, the wait is too long or the handover is too rushed.”

He said Starbucks will focus on “giving more power” to baristas and giving them “tools and time to make great drinks.” Some employees said cellphone orders can pile up and overwhelm stores, putting strain on employees.

Niccol, who lives in Newport Beach, California, has come under criticism for not moving permanently to Starbucks' Seattle location and for using a company jet to commute.

According to the company, Niccol will spend his time in stores, at the Seattle headquarters and with Starbucks employees around the world.