Retail

Starbucks' new CEO hints the chain may have become a little too convenient

Brian Niccol
Brian Niccol became the CEO of Starbucks on Monday. Chipotle
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The new Starbucks CEO, Brian Niccol, wants you to stop by your local Starbucks store — then, maybe, kick back, hang around, order a second coffee, and chat with your fellow customers.

That's something fewer people are doing these days, Niccol said in his first public message as Starbucks' top executive. And he's hoping to change that.

"We're committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks," Niccol said in an open letter released on Tuesday.

"Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between 'to-go' and 'for-here' service," he added.

Niccol became Starbucks' CEO on Monday after several years at Chipotle Mexican Grill. He's joining Starbucks as it faces slowing sales and looks for ways to get customers ordering again.

The chain has invested in its drive-thru, pickup, and delivery sales over the past several years — efforts that at times have been at odds with its traditional role as a "third place" for people to gather outside work and home.

One employee told Business Insider that wait times had increased at the Starbucks store he works at in part because of the "to-go" service that Niccol mentioned in his letter — namely, because of an increase in the number of orders that customers place through the Starbucks app for pickup. The store often struggles to fill those orders, especially from customers who walk in to order since it's understaffed, the employee said.

Analysts have said that Niccol could oversee changes to elements of the company's operations. His Tuesday letter didn't offer many specific steps, but Niccol did say that he planned to "spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps."

Visiting a Starbucks store in the US "can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic," Niccol wrote.

"These moments are opportunities for us to do better," he added.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at abitter@bjinnox.com.

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Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@bjinnox.com or via encrypted messaging app Signal at +1 (808) 854-4501.