Starbucks Prices Are Rising: How Its New CEO Plans to Save the Company | WSJ

This episode explores the challenges facing Starbucks and the strategies implemented by its new CEO, Brian Niccol, to revitalize the brand. Against the backdrop of rising coffee prices, increased wait times for mobile orders, and lagging sales, Niccol identifies a core problem: Starbucks lost focus on the in-store customer experience. More significantly, the reliance on mobile ordering and drive-thru services, coupled with the open-bathroom policy, created operational inefficiencies and negatively impacted the overall atmosphere. For instance, the open bathroom policy led to loitering and long lines, while the mobile ordering system resulted in overcrowded stores and frustrated customers. Niccol's solution involves a multi-pronged approach: improving the mobile ordering algorithm to better sequence orders and reduce wait times, implementing a new code of conduct restricting bathroom access to paying customers to improve store safety and barista experience, and reinstating the condiment bar to improve speed of service and customer customization. Furthermore, he plans to restore comfortable seating to enhance the in-store experience. In essence, Niccol aims to re-establish the connection between Starbucks and its customers by focusing on the quality of the in-store experience and the brand's core values, a strategy he successfully employed at other companies. This signifies a shift away from solely prioritizing convenience and rewards programs towards a more balanced approach that values both efficiency and the unique Starbucks brand experience.