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Starbucks (SBUX) is set to eliminate a significant number of drinks and food options in the coming months as part of the company’s plan to simplify its offerings, reduce wait times and improve its customer experience.
CEO Brian Niccol outlined the plan on Starbucks’ earnings call Tuesday, saying there’s soon going to be a “roughly 30% reduction in both beverages and food,” but he didn’t name specific items. Niccol has previously said that the chain’s menu had become “overly complex,” resulting in long lines.
Starbucks has already axed its lineup of olive oil drinks and iced energy drinks. However, the coffee giant has recently added new drinks, too, including an espresso-based beverage called the cortado. The company also brought back pistachio-flavored drinks.
A slimmer selection will help Starbucks “be more responsive and tuned in to cultural moments,” Niccol said, pointing to the success of the Dubai Matcha drink based off its new matcha tea options that recently became a viral craze.
The changes are part of Niccol’s plans to turnaround the chain’s fortunes, which reported its fourth consecutive quarter of declines: US sales at stores open at least a year slid 6% for the quarter that ended on December 29.
Niccol admitted that there’s “still room for improvement,” but he’s confident that Starbucks is “on the right track.” Since he took the helm last September, Niccol has rolled out a series of changes that have received a “positive response” from customers.
Those changes include reimagining the vibe inside Starbucks’ locations by instituting a new policy for paying customers, bringing back condiment bars and adding personal touches written by baristas on paper cups. The company also tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots.
However, there’s one change that customers probably don’t like: Niccol has drastically reduced the number of deals, resulting in a 40% decline in discounted transactions. He credited that for improving sales.
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