New Starbucks CEO plots a return to business' roots

Starbucks’ new CEO has committed to a return to the company’s roots in his first week in the role.

Chairman and CEO Brian Niccol said the business had “drifted from our core”.

He added: “We have an opportunity to make the store experience better for our partners and, in turn, for our customers.”

A statement from Niccol released by Starbucks read: “Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community centre where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista. A visit to Starbucks is about connection and joy, and of course great coffee.

“Many of our customers still experience this magic every day, but in some places — especially in the U.S. — we aren’t always delivering. It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better. 

“Today, I’m making a commitment: We’re getting back to Starbucks. We’re refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. This is our enduring identity. We will innovate from here.”

Niccol replaced predecessor Laxman Narsimhan in a surprise shake-up of the coffee giant’s senior team following pressure from investors.

Narsimham stepped down after little more than a year in the job, handing the reins to Niccol, who was previously chairman of Mexican restaurant group Chipotle.

The change followed weeks of pressure from activist investor Elliott Investment Management, which had called for change at Starbucks following a slowdown of sales in the US, Canada and China.

Starbucks’ shares, which had dropped around 23%, jumped 20% following the announcement.

Starbucks was founded in Seattle in 1971 and now has more than 39,000 stores worldwide, including over 1,000 in the UK. 

Last year the coffee chain revealed plans to open 100 stores in the UK, putting an end to rumours that circulated in July 2022 that the brand was looking to sell its UK business.