Brian Niccol, new CEO of Starbucks
Anjali Sundaram | CNBC
new Starbucks Chief Executive Brian Niccol will focus on improving the chain’s U.S. operations in his first 100 days before moving on to address issues overseas, according to an open letter published Tuesday.
coffee giant Appointment of Nicole as Chief Executive Officer In August, the company’s then-CEO Laxman Narasimhan was ousted. Starbucks’ sales have declined for several quarters amid falling demand for its beverages, particularly in the U.S. and China, and the leadership transition has come as a result.
Nicole’s official first day on the job is Monday. He joined Starbucks in Chipotle Mexican BBQHe served as CEO there for six years, transforming the taco chain in crisis into a favorite among diners and Wall Street alike. Now his task is Turn losses into profits for Starbucks.
“…In some places, particularly in the United States, we have not always delivered on our promises,” Nicholl wrote in an open letter to customers, employees and stakeholders. “It can feel transactional, the menu can be overwhelming, the offerings are inconsistent, wait times are too long or handoffs are too busy. These moments are opportunities for us to do better.”
Nicole outlined four areas for improvement: barista experience, morning service, café and company branding.
“This is our plan for the United States and where I need to initially focus my time,” Nicol wrote in the letter.
To address these challenges, Starbucks will invest in technology to improve the barista and customer experience, make the company’s supply chain more efficient, and upgrade its app and mobile ordering.
But later, he will plan to tackle its international operations, such as China, its second-largest market. Starbucks’ business in China has struggled to recover from the epidemic, and increased competition has led the coffee chain to rely more on discounts and promotions to win back customers.
“In China, we need to understand potential avenues for growth and leverage our strengths in this dynamic market,” Nicol said.
He also said the company would work to curb what he called “misconceptions” about its brand in the Middle East. Many American brands, including Starbucks and McDonald’s, are facing boycotts over America’s support for Israel’s attack on Gaza.
This story is developing. Please check back for updates.
