New Starbucks CEO Brian Niccol outlined his plans to improve slump in sales of the American multinational coffeehouse chain, emphasizing his goal to focus initially on issues that is hurting the company in the U.S., before setting his eyes on fixing things abroad.
In an open letter addressed to customers, employees and stakeholders, published on Tuesday, Niccol admitted that the company has not always been delivering in the U.S.
"It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better."
Niccol identified four areas that needs improvement. First, he underscored the need to empower baristas to take care of customers by providing them the tools and time to craft great drinks. Second, he emphasized the importance of morning service, delivering outstanding drinks and food, on time, every time. Third in line was the reestablishment of Starbucks as the "community coffeehouse." Last in the list was the company's branding.
Niccol noted that the company will invest in technology that enhance the partner and customer experience to revive sales in the U.S. He will also focus on improving the supply chain and making changes to the app and mobile ordering platform.
He admitted though that while he is initially planning to focus on the U.S., the company has a bigger task in the international scene. It operates in 87 markets around the world. He specifically mentioned the markets in China, Middle East, Asia Pacific, Europe and Latin America.
Niccol emphasized the need to understand the potential path to capture growth and capitalize on Starbucks' strengths in China market. Starbucks' business in China faces increased competition forcing the coffee chain to lean more on discounts and promotions to win back customers, CNBC reported.
The CEO also sees enormous potential for growth, especially in regions like the Middle East, where the company will work to dispel misconceptions about brand, which took a hit after U.S. support for Israel in Gaza war.
For the first 100 days, Niccol revealed he would be spending time in the cafes, meeting with key partners and suppliers.
"Together, we will get back to what makes Starbucks, Starbucks," he noted at the end of his open letter.
Starbucks named Niccol as its new chief executive in August. He replaced CEO Laxman Narasimhan, who was ousted following continuous slump in quarterly sales.
Niccol was from Chipotle Mexican Grill where he was also the chief executive who made a turnaround of the dwindling business in a span of six years. He is now tasked to do the same for Starbucks.
