Starbucks has been making big changes as part of its “Big Fix.”
Under new CEO Brian Niccol, who took the helm in Aug. 2024, the coffee giant has launched a massive “Back to Starbucks” strategy.
With sweeping moves like promises to deliver fresh coffee in four minutes, slashing thousands of jobs, and cutting its menu by 30%, it’s still too early to tell if these changes will give Starbucks (SBUX) the boost it needs to reclaim its top spot.
To give you a better sense of Starbucks’ “Big Fix,” we’ve compiled a list of the most significant changes the Seattle-based company is making. Let’s take a look.
In Nov. 2024, Niccol laid out an ambitious plan: Serve fresh-brewed coffee in under four minutes. At the time, he said that long wait times were a key issue and needed to be reduced, especially during busy periods like breakfast and lunch.
“Sometimes you just want a brewed cup of coffee really quick,” Niccol told the Wall Street Journal (NWSA) at the time.
In Oct. 2024, Starbucks said it would pare down its menu as part of a broader effort to improve efficiency and speed. The company confirmed it would eliminate less popular items, including its olive-oil infused Oleato drinks, which were discontinued starting Nov. 7.
This move aligned with Niccol’s strategy to streamline operations, ease the burden on baristas, and improve customer service. Then, in Jan. 2025, Starbucks revealed plans to introduce new items, such as vegan-friendly falafel and cortado espresso.
In late February, Starbucks detailed plans to cut 13 drinks from the menu in favor of better-selling items. Earlier that same month, the company said it would limit mobile orders to 12 items per customer.
In February, Starbucks announced it would lay off 1,100 corporate employees as part of its ongoing restructuring efforts to refocus on its core business.
Niccol emphasized the need to simplify the company’s structure, eliminate redundancies, and create more efficient teams. These layoffs, among the largest in the company’s history, will also eliminate several hundred unfilled positions.
In early March, during his first address to staff since the announcement, Niccol urged corporate employees to work harder and take accountability for the coffee giant’s financial health. He highlighted inefficiencies in Starbucks’ operations and decision-making, admitting that “we’re not effective” and these issues have contributed to the company’s recent struggles.
Starbucks is defending its decision to reverse the open-door policy. At the end of January, the company reversed its 2018 goal of being the “third place” for people to gather, regardless of whether they were customers or not. Niccol stated that Starbucks would rather close locations than return to its previous stance.
Starbucks reintroduced ceramic mugs and handwritten notes on cups to connect with customers and elevate the cafe experience, according to Niccol. Most recently, during the company’s March 12 shareholder meeting, he shared plans to expand seating options, add power outlets, and include abundant food displays. Among these changes are redesigned stores that will separate mobile ordering from customers who choose to sit inside, as well as a redesigned espresso bar that could “add a sense of theater.” The company has already begun piloting these new designs in select U.S. locations.
The post 5 big changes Starbucks has made this year appeared first on Quartz.
