In a move to streamline products, reduce customer wait times, and enhance the overall customer experience program, Starbucks is set to undergo significant changes in its menu, with a plan to discontinue a large number of beverage and food options in the coming months.
CEO of Starbucks, Brian Niccol, outlined this plan during a financial conference call on Tuesday, January 28th. He mentioned that they will soon be cutting back on drinks and foods by about 30%, without specifying which items will be phased out.
Niccol had previously expressed that the Starbucks menu had become “overly complicated,” leading to extended wait times for customers.
Starbucks has already removed olive oil drinks and its chilled energy drink series. However, the coffee giant has also introduced new beverages recently, including a concentrated coffee drink called cortado. The company has also reintroduced a pistachio-flavored drink.
This move is part of the company’s “Returning to Starbucks” strategy. Since becoming Chairman and CEO last September, Niccol has committed to “reimagining what makes Starbucks unique.”
Niccol stated that streamlining choices will help Starbucks “better respond proactively and tap into cultural trends.” He pointed out that the success of the Dubai matcha drink stemmed from the recent surge in popularity of new matcha options online.
The menu changes are part of Niccol’s plan to turn around Starbucks’ fortunes. Starbucks’ reports indicate that its sales have declined for the fourth consecutive quarter: sales at US stores open for at least a year dropped by 6% for the quarter ending December 29th.
Niccol admitted that there is still “room for improvement,” but he believes that Starbucks is on the “right track.” Since taking the helm at Starbucks last September, Niccol has introduced a series of reforms that have been met with a “positive response” from customers.
These changes include reshaping the ambiance of Starbucks stores by introducing a new policy for paid customers (those allowed to stay inside the store), restoring the condiment bar, and adding personalized notes from baristas on paper cups. The company also changed its name to “Starbucks Coffee Company” to emphasize its coffee roots.
However, one change that may not sit well with customers is Niccol’s significant reduction in promotional quantities, leading to a 40% drop in discounted deals.