Starbucks’ new CEO has overwhelming menus, inconsistent products, and long, hectic waits

In his first week on the job, star CEO Brian Niccol, 50, has pledged to return Starbucks to its former glory, when the ubiquitous coffee haunt served as a second living room for many of its patrons .

The expert who revived Chipotle’s fortunes during his more than six years at the fast-casual Tex-Mex chain said the more than 39,000 Starbucks stores worldwide must return to their roots, offering personalized, high-quality. quality coffee that consumers can enjoy at the premises.

“There is a common feeling that we have moved away from our core,” he wrote in a company-wide open letter, summarizing the many conversations he had with staff. “We’re focusing on what has always set Starbucks apart—a welcoming coffee shop where people gather and where we serve the best coffee, handcrafted by our skilled baristas.”

Niccol goes to the ground. Already on his second day at the company, he addresses the fundamental issues he sees in the business and provides a brief overview of its strategic direction.

By comparison, predecessor Laxman Narasimhan had nearly six months of on-the-job training before taking over in March 2023 and presented his first strategic overview barely a month later.

Starbucks’ fourth CEO in two years, Niccol, takes over at a turbulent time for the chain.

Narasimhan tripled the company’s financial targets in less than a year and presided over two consecutive quarters of declining same-store sales.

To bolster sales, Starbucks introduced its wildly popular fall-themed Pumpkin Spice latte back in August, which many saw as a sign of desperation.

Brian Niccol’s plan to turn things around

Niccol said his initial focus would be on fixing the problems in his US stores, a concern for founder Howard Schultz because it accounts for the bulk of his global profits.

In Starbucks’ home market, consumers are typically spoiled for choice and often have several convenient coffee chains along their daily commute where they can pick up a cup of Joe on their way to work.

A brand that charges premium prices, therefore, needs to differentiate itself through its experience, and lately Starbucks customers have turned their backs on the chain in frustration.

More than 60 percent of its critical morning traffic comes from app users, but the company recently acknowledged that a significant portion cancels their orders due to excessive wait times upon arrival at their local Starbucks.

Instead, Nichols wants consumers to associate the chain with emotions of joy and human connection, along with great coffee, and that’s where he sees a lot of room for improvement.

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“In some places, especially the US, we don’t always deliver,” Niccol wrote. “It can feel transactional, the menus can be overwhelming, the product inconsistent, the wait too long or the transfer too hectic.”

This emphasis on human connection is nothing new; it’s a brand claim that harkens back to Schultz’s vision, which Narasimhan also emphasized.

The collapse of Starbucks

But Niccol’s predecessor further industrialized the process to reduce seconds waiting times, diminishing the long-held role of baristas as the “heart of Starbucks” and turning the experience into a McCafe.

In pursuit of higher profits, Starbucks also strayed from its coffee roots, focusing increasingly on caffeinated soft drinks, where he can often earn higher margins.

Finally, the Seattle chain must win back lost customers after suing unionized employees who called for solidarity with Palestinians caught in the crossfire of Israel’s war with Hamas.

Starbucks tried to make it clear that it opposed the hijacking of its brand, but by that time, progressive consumers had begun to boycott the chain.

With shares no higher than they were five years ago, the board ousted Narasimhan from the company in August with immediate effect, ending his tenure as CEO after less than 18 months.

Niccol’s hiring met with wild approval from investors, easily justifying the $85 million performance-based bonus in cash and equity offered by Starbucks to lure him away from Chipotle.

Now, they will have to see if he is more successful in re-establishing the emotional connection consumers once had with the brand than Narasimhan.

“We’re going to go back to what Starbucks did, Starbucks,” Niccol promised.

The company could not immediately be reached for further comment.

This story was originally featured on Fortune.com