In addition, Brian Niccol’s salary, considered exorbitant, also sparked controversy. Under the terms of his job offer, his annual base salary is $1.6 million, with a potential bonus of $7.2 million, not including Starbucks stock of up to $23 million. dollars per year.
To deal with the difficult situation in which the company now finds itself, its new CEO, Brian Niccol, detailed his recovery strategy this Wednesday, October 30. The overall goal is to deliver a personalized drink to the customer in less than four minutes. The NBC News media returned in more detail to the main points of this “Back to Starbucks” recovery plan in the United States.
1. Rearrange Mobile Orders
Mobile orders account for more than 30% of Starbucks’ U.S. transactions. They allow customers to order their products via an application. Café counters are often filled with products ordered online and in person: “When it works well, it’s great, but sometimes it can be a challenge for customers and partners. Currently, I think there is some customization specific to mobile app order fulfillment that is really too broad and unnecessary so I think we need to put better features in place to give you access to beverage-specific customization. that you order, and this will also allow our baristas to be more consistent in what they execute,” said Brian Niccol during his conference this Wednesday.
2. Simplify the menu
As we announced to you this October 23, Brian Niccol wants to simplify the menu “much too complex” Starbucks brands. Prices will thus be reviewed and the emphasis will be placed on more artisanal products. The offer will be “smaller, but of better quality”. A less complex menu could lead to greater efficiency since baristas will have, for example, fewer drink recipes to memorize.
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3. Forget the “fast food cafe” image
When Starbucks was created, the places in which the brand developed were intended to be welcoming. So, the objective was for customers to find a place to relax, outside of home and work. However, over time, this focus has gradually diminished, with the brand opening more and more “collection points”, sometimes without a seat. Brian Niccol wants to return to the origins by offering more “cozy” and personal places. Thus, coffees will now be served in ceramic cups and first names will once again be written on the containers with a marker. “The reality is that the majority of cafes that we have are cafes that I think don’t have the right seats, potentially not the right texture, not the right heat. We need to reestablish that. I think there is design elements that can further advance this idea of a community café, even in some of the things we’ve done that just don’t lend themselves to the full, traditional café experience,” he said. -he confided to CNBC.
4. New marketing
The new marketing approach should target a wider audience, highlighting the quality of the coffee used by Starbucks. In addition, promotions offered to customers, deemed “ineffective” by Niccol, will be reduced. As a reminder, the American businessman is known for having turned around the American restaurant chain Chipotle after a series of crises.
5. End of Covid habits
Before the Covid years, customers who went to Starbucks could themselves spice up their coffees with sugar, milk, cinnamon, etc. During the health crisis, the “condiment bars” had disappeared. Baristas were responsible for tailoring drinks to the specific tastes of each customer. It seems that a return to “pre-Covid” is planned for customers who will once again be able to garnish their drinks with the condiments of their choice.
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6. Three compulsory office days per week
Niccol wants to ensure that each of the cafes is “properly staffed, from the morning rush hour, through the middle hours.” This desire comes following a series of measures already implemented at staff level, such as increasing the average number of working hours of baristas. This Thursday, October 31, the media Business AM announced that the company would introduce a policy of 3 compulsory office days per week for its staff. This will apply from January and failure to comply with this measure could lead to dismissal.
7. Milk substitutes of animal origin
Over time, Starbucks has seen its customers’ preferences evolve. This concerns in particular the types of milk chosen. More and more customers are now turning to alternatives to animal-based milk. However, these substitutes are currently more expensive. This should change as Niccol plans to discontinue this supplement. According to the company, this would amount to a 10% reduction in the price of certain drinks.
