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When Brian Niccol took over as CEO of Starbucks 18 months ago with the intention to return the company to its glory days of the 1990s and early aughts, he was surprised to see the coffee chain felt more like a factory floor than a warm hangout spot.<\/p>\n
In an recent episode of Semafor\u2019s \u201cThe CEO Signal\u201d podcast, Niccol said when he first took the helm of the company in late 2024, he visited several stores and noticed the coffee chain had put so much emphasis on fulfilling large volumes of orders it had strayed from its reputation as a cozy coffee house. Niccol\u2019s \u201cBack to Starbucks\u201d plan introduced in his first days as CEO was meant to restore Starbucks to its roots as a \u201cthird place\u201d for customers to linger in.<\/p>\n
\u201cWe got really focused on trying to be efficient and run it like a manufacturing facility, as opposed to recognizing, no, this is actually a customer service experience, where we do great craft and create great drinks for people on time,\u201d Niccol said.<\/p>\n
Although Starbucks stock is virtually unchanged since Niccol took over a year-and-a-half ago, the former Chipotle CEO has been working hard to restore that certain charm that once belonged to \u201cthe third space.\u201d He found that Starbucks had too much of a good thing.<\/p>\n
A to-go culture gone too far<\/p>\n
Niccol came into a company that was in some ways battered by the success of its popular online ordering, still responsible for most of the chain\u2019s orders, including 40% drive-thru and 30% mobile. In early 2024, then-CEO Laxman Narasimhan said customers were abandoning their online orders after placing them online, having to wait in long lines for their orders to be fulfilled during busy commuting hours. The Starbucks menu was large, and patrons\u2019 ability to customize their orders overwhelmed baristas and slowed down order fulfillment.<\/p>\n
Early in his tenure, Niccol spoke with customers who lamented the lack of comfortable seating Starbucks locations once had, as well as baristas recognizing and chatting with them. Baristas told Niccol Starbucks should bring back condiment bars to let customers add their own cream and sugar, relieving pressure from workers fulfilling more complicated orders.<\/p>\n
\u201cThe feedback I heard was, we\u2019ve made the job more complicated than necessary,\u201d Niccol said. \u201cIt was one of those things where it\u2019s like, we got to get back to focusing decisions that actually show up in the store, and then you got to understand how those decisions actually are executed in the store.\u201d<\/p>\n
The company took those suggestions, among others, returning seats to thousands of store locations and returning condiment bars after their pandemic-era discontinuation.\u00a0<\/p>\n
So far, the \u201cBack to Starbucks\u201d plan appears to be working. The company reported a 4% increase in year-over-year same-store sales, and a 5% uptick in revenue for the quarter. Profits took a hit as the company navigated tariffs and brought on more workers to staff its stores.<\/p>\n
\u201cWe\u2019re pleased with our progress, and we believe we remain ahead of schedule, and we\u2019re confident on our path forward,\u201d Niccol told investors in January. \u201cBut we also recognize that we\u2019re still in our turnaround.\u201d<\/p>\n
The road back to Starbucks<\/p>\n
At the core of the raft of changes to the Starbucks experience was making the chain as much about customer service as about coffee, Niccol noted.<\/p>\n
\u201cf you aren\u2019t working on initiatives that ultimately make the store experience better for our customer and our partner, probably working on the wrong things,\u201d he said.<\/p>\n
Niccol rolled out the \u201cBack to Starbucks\u201d plan through a series of immediate shifts followed by more structural changes. Locations activated more wall outlets and began giving ceramic cups to customers who wanted to sit in the store for a while. Baristas were told to write personalized messages on paper to-go cups. Workers were also required to begin wearing black shirts under green aprons as part of a brand refresh.<\/p>\n
Behind the counter, Starbucks slashed menu items by 30% to lighten the load of baristas. It rolled out an AI-powered assistant designed to troubleshoot equipment issues, teach baristas how to make drinks, and prioritize orders to increase efficiency.<\/p>\n
To be sure, not all baristas are on board with the changes. More than 1,000 union baristas went on strike in November 2025, demanding Starbucks increase staffing to improve long customer wait time, as well as let existing baristas work more hours to meet the threshold for benefits. Last May, more than 2,000 baristas protested the company\u2019s dress code and argued workers should have a say in what they wear.<\/p>\n
Starbucks did not respond to Fortune\u2019s request for comment.<\/p>\n
Niccol said the \u201cBack to Starbucks changes have already shifted the company\u2019s reputation. In an interview at the Wall Street Journal Leadership Institute in December 2025, Niccol said he was reading through a Reddit thread of Starbucks job candidates interviewing at the company, with some users asking what interview questions they should prepare to be asked. Other users, presumably Starbucks employees, said candidates should be prepared to talk about customer service.<\/p>\n
\u201cIf you don\u2019t like customer service, you\u2019re probably not going to like working at Starbucks. We\u2019re in that transition of getting people to understand that,\u201d Niccol said. \u201cWhen I saw that in the Reddit thread, I was like, \u2018OK, we\u2019re making progress on what the standard of services that we want [are].\u2019\u201d<\/p>\n
#Starbucks #CEO #Brian #Niccol #admits #chain #ran #manufacturing #facility<\/p>\n","protected":false},"excerpt":{"rendered":"
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