Starbucks’ new chief govt says its cafes are inconsistent
The new chief executive of Starbucks Brian Niccol has admitted the chain’s stores are inconsistent and customers are waiting too long for their coffees – and has pledged to dispel what he calls ‘misconceptions’ about the Gaza conflict.
Mr Niccol, 50, took over the brand this week after a successful stint at Chipotle Mexican Grill, before bosses reportedly persuaded him to come on board by offering a renumeration package worth up to $100 million (more than £76 million).
In an open letter, he promised to reform customers’ in-store experience and ensure food and drinks are delivered on time.
‘We’re committed to elevating the in-store experience, ensuring our spaces reflect the sights, smells and sounds that define Starbucks,’ Niccol said in the letter, adding that ‘coffee is our heart’.
His appointment comes after two consecutive quarters of declining sales.
Brian Niccol, 50, took over the brand this week after a successful stint at Chipotle Mexican Grill, before bosses reportedly persuaded him to come on board by offering a renumeration package worth up to $100 million (more than £76 million)
Starbucks operates in 87 different markets but is currently facing a boycott from pro-Palestine activists
Mr Niccol admitted: ‘In some places — especially in the US — we aren’t always delivering. 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.’
In the letter, published online, the new CEO outlined four areas he intends to focus on during his first 100 days in charge.
He pledged to ’empower’ baristas to take better care of customers, promising they will have ‘the tools and time’ to deliver hand-crafted drinks.
Mr Niccol said the chain would focus on ‘getting the morning right’ and delivering food and drinks on time.
He added he wants to return Starbucks to a community coffeehouse – making them more inviting with comfortable seating and a ‘clear distinction’ between sit-in and takeaway service.
Finally he said Starbucks would ‘tell our story again’ before appearing to take a swipe at protesters by adding: ‘We won’t let others define who we are.’
Although he did not explicitly mention Israel or Gaza, Mr Niccol added: ‘Internationally, we see enormous potential for growth, especially in regions like the Middle East, where we’ll work to dispel misconceptions about our brand.’
It is thought that an international movement to boycott the chain by customers angry about the war in Gaza has harmed profits and sales significantly.
Opposition began after a Starbucks’ union posted a message, since deleted, in solidarity with Palestinians after the war with Israel began in October last year.
Brian Niccol and his wife, Jennifer Niccol, in Santa Ana, California (October 2023)
The coffeeshop chain has had two consecutive quarters of declining sales
Mr Niccol’s package includes use of the corporate jet for weekly 2,000-mile round trips in addition to millions of dollars in salary
The union group shared a message reading ‘Solidarity with Palestine’ above an image of a bulldozer operated by Hamas tearing down a fence on the Gaza strip.
The image sparked outrage for allegedly glorifying the attack by Hamas on October 7, which led to the deaths of around 1,200 Israelis and foreign nationals and the kidnapping of more than 250 more.
Starbucks then sued its union over the post, before saying on social media: ‘We unequivocally condemn these acts of terrorism, hate and violence, and disagree with the statements and views expressed by Workers United and its members.’
Activists then began the boycott, which spread as the Israeli incursion caused mounting casualties.
More than 41,000 people have so far been killed in Gaza by Israeli forces, the Palestinian health agency says.
The CEO has already caused controversy after his ‘super-commute’ was revealed to involve flying 1,000 miles in a private jet – while the company lectures its customers on climate change.
Mr Niccol has struck a deal allowing him to live in Newport Beach, California, and fly to Starbucks’ Seattle headquarters on the company’s dime for up to $250,000 per year.
The arrangement, which includes use of the corporate jet for weekly 2,000-mile round trips in addition to millions of dollars in salary – has sparked outrage among environmental campaigners who accuse Starbucks of ‘climate change hypocrisy’.
The new CEO’s package includes a $1.6 million base salary with a potential annual bonus of up to $7.2 million, as well as equity awards worth up to $23 million.
The arrangement, revealed in an SEC filing last week, also includes of course the corporate jet for his weekly 2,000-mile round trip and a remote office set up in Newport Beach.
The job offer letter said Niccol’s would not ‘be required to relocate to the company’s headquarters’ but would ‘agree to commute from your residence to the company’s headquarters.’
It explained that he would be allowed to use the company’s jet for ‘business related travel’ and for ‘travel between [his] city of residence and the company’s headquarters.’