Starbucks CEO Brian Niccol is adjusting the company’s approach to discounts as part of efforts to revitalize the coffee brand. Over the past year, Starbucks has reduced discounts under Niccol’s leadership, who assumed the CEO position in August, succeeding Laxman Narasimhan. This shift in leadership occurred after declining stock prices and sales prompted pressure from activist investors and former CEO Howard Schultz.
Starbucks had previously offered discounts to attract cost-conscious consumers during a period of inflation, a strategy also adopted by other restaurant and fast-food chains. Moving forward, Niccol aims to adopt a different strategy to regain customer loyalty.
For the holiday season, Starbucks has stated it will not run broad promotional offers, though it will continue to promote seasonal drinks. This update was shared earlier this month during a strategy session for store leaders.
Niccol announced intentions last month to initially focus on improving the U.S. operations of the company. The first 100 days in his role will involve enhancing store experiences for customers, boosting efficiency, and improving workforce morale.
Key areas of focus include ensuring timely preparation of drinks and food and making stores more inviting. Niccol plans to implement more comfortable seating arrangements to encourage patrons to stay longer and create a clearer distinction between “to-go” and “for-here” services.
Additionally, Niccol will emphasize enhancing career opportunities for Starbucks partners by providing a clear growth path and ensuring baristas have the tools and time necessary to prepare beverages effectively.
