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.’

Read Starbucks CEO’s letter 

As I step into my first week as ceo, I do so not only as a leader, but as a long-time customer. Over the past few weeks, I’ve spent time in our stores, speaking with partners and customers, and talking with teams across operations, store design, marketing and product development.

In each conversation, two truths emerged: First, Starbucks is a beloved brand with wonderful people. We are woven into the fabric of people’s lives and the communities we serve. Second, there’s a shared sense that we have drifted from our core. We have an opportunity to make the store experience better for our partners and, in turn, for our customers.

Starbucks was founded on a love for high quality coffee — handcrafted by our outstanding green apron partners and enjoyed with intention. Coffee is our heart. We own and operate Hacienda Alsacia, our coffee farm on the slopes of Costa Rica’s Volcano Poás, which serves as the heart of our research and innovation efforts. From our network of Farmer Support Centers, Starbucks agronomists share research, education and best practices with local farmers. We invest in the finest quality beans. Our skilled team of roasters carefully prepare these beans in five Starbucks roasting facilities across the U.S., in Amsterdam to serve EMEA markets, in Kunshan for China, and in Karnataka, India, for that growing market. We also operate Starbucks Reserve Roasteries in Milan, Shanghai, Tokyo, New York City, Chicago and Seattle, where we roast small batch Reserve coffees. We design the best equipment for our stores and invest in training for our baristas to ensure every cup reflects our commitment to excellence. Each cup is more than a drink; it’s a handcrafted moment, made with care.

Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista. A visit to Starbucks is about connection and joy, and of course great coffee.

Many of our customers still experience this magic every day, but in some places — especially in the U.S. — 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.

Today, I’m making a commitment: We’re getting back to Starbucks. We’re refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. This is our enduring identity. We will innovate from here.

We’ll focus initially on four key areas that we know will have the biggest impact:

Empowering our baristas to take care of our customers: We’ll make sure our baristas have the tools and time to craft great drinks every time, delivered personally to each customer. For our partners, we’ll build on our tradition of leadership in retail by making Starbucks the best place to work, with career opportunities and a clear path to growth.

Get the morning right, every morning: People start their day with us, and we need to meet their expectations. This means delivering outstanding drinks and food, on time, every time.

Reestablishing Starbucks as the community coffeehouse: We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks. Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between ‘to-go’ and ‘for-here’ service.

Telling our story: It’s time for us to tell our story again — reminding people of our unmatched coffee expertise, our role in communities and the special experience that only Starbucks can provide. We won’t let others define who we are.

To support this vision for our U.S. business, we’re making investments in technology that enhance the partner and customer experience, improve our supply chain and evolve our app and mobile ordering platform.

This is our plan for the U.S., and where I need to focus my time initially. But Starbucks is a global company. We operate in 87 markets around the world, where thousands of talented green apron partners share their love of coffee with customers every day. I know I have much to learn from these outstanding teams and I look forward to getting on the road and spending time with them. In China, we need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market. Internationally, we see enormous potential for growth, especially in regions like the Middle East, where we’ll work to dispel misconceptions about our brand, and in Asia Pacific, Europe and Latin America, where the love for Starbucks is strong.

My focus for the first 100 days is clear. I’ll spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps. Together, we will get back to what makes Starbucks, Starbucks.

On we go,

Brian Niccolchairman & ceo