Breaking
Business

Starbucks CEO outlines next phase of turnaround focusing on cafes

Starbucks CEO Brian Niccol announced the next stage of the company's turnaround, emphasizing cafe renovations and enhancing customer experience two years into his leadership.

Starbucks CEO outlines next phase of turnaround focusing on cafes
AI Generated | MinuteBrief Team

Starbucks is entering the next phase of CEO Brian Niccol’s “Back to Starbucks” turnaround, focusing on cafe renovations and improving customer experience. The goal is to revive the atmosphere that defines the brand while making stores more inviting to encourage return visits.

In the past nine months, Starbucks has completed over 1,000 cafe renovations, with plans for thousands more in the next fiscal year. Upgrades include practical and aesthetic enhancements such as additional seating and softer lighting, aimed at restoring the classic “Starbucks vibe.” These improvements come as competitors increase pressure through lower prices and greater convenience.

Enhancing customer service is also a key priority. Starbucks is training baristas through its “Green Apron Service” program, which fosters more positive and meaningful interactions. Niccol has set a bold target for Starbucks to be “the world’s greatest customer service company.”

The turnaround shows promising results. In fiscal Q3, global same-store sales rose 7.9%, driven by strong performance in the U.S., Starbucks’ largest market. Niccol noted the company has returned to growth, achieved positive global comparable sales, and improved margins, positioning Starbucks for sustained success.

Since Niccol became CEO in 2024, Starbucks’ stock has gained about 30%, though the S&P 500 has increased 42% over the same period.

More from Business