#Heres #Brian #Niccols #Plan #Revive #Starbucks
Key takeaways
- New Starbucks CEO Brian Nicol on Wednesday detailed his plan to revive the coffee chain.
- Main topic: Starbucks wants to deliver its coffee to customers within four minutes of ordering it, believing that quick delivery will help bring customers back.
- Shares of the coffee giant were little changed early Thursday following the company’s latest quarterly financial results.
Starbucks (SBUX) CEO Brian Nicol has laid out a plan for a brighter future for the coffee giant. Part of it is as basic as it gets: get coffee to customers quickly.
Nicol, the former CEO of Chipotle Mexican Grill (CMG), led his first earnings call Wednesday since taking over at Starbucks in September, detailing a “Back to Starbucks” campaign designed to lure customers back as third-quarter comparable store sales decline. respectively. .
Nicol said he wants the company to deliver its drinks to customers inside the store within four minutes, and to always get its drinks to customers who order mobile on time. “The moment the barista delivers a cup of coffee directly to the customer is the moment of truth for our brand,” Niccol said during the call, a transcript of which was provided by Visible Alpha.
Among other plans Nicol discussed on Wednesday:
- He wants the company to improve staffing levels at key times. Relatedly, Nicol mentioned a plan to fill most leadership roles in retail with in-house employees.
- To make it easier “for customers to enjoy brewed coffee their way,” Niccol said Starbucks will bring back the coffee spice bars by early next year. That can also help with speed, he said.
- He wants to simplify the menu. “We will continue to offer great choices to customers but will focus on fewer and better offers that are continually being created,” Nicol said.
- Nicol said he wants to speed up the process of installing Serene equipment and technology, which increases efficiency. The Siren system includes machines that handle employee tasks such as mixing and accessing milk and ice.
- He wants to make changes to the company’s mobile ordering and payment system, which he said has helped increase orders but can make it “difficult to sequence them and deliver them quickly to our customers.”
“Our problems are solvable. Most of what we have to do is within our control,” Nicol said.
Starbucks said late Wednesday that net revenue fell 3% to $9.1 billion for the fourth quarter, falling short of analysts’ expectations of $9.2 billion.
The stock was little changed in morning trading, causing it to rise slightly during the year so far.
#Heres #Brian #Niccols #Plan #Revive #Starbucks
