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Starbucks goes retro to make customers feel welcome again
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Starbucks goes retro to make customers feel welcome again


New York
CNN

Starbucks is bringing back handwritten names in Sharpie on cups and self-serve sugar and cream stations to try to win back customers.

Baristas who write customers’ names and messages on their drink orders in marker will make a comeback, Starbucks’ new CEO Brian Niccol said during a quarterly earnings call Wednesday. It is part of his strategy to create a coffeehouse atmosphere at Starbucks and add a ‘human touch’ to it.

“The number I heard was about 200,000 Sharpies that we need to track down,” Niccol said in an interview with CNBC on Wednesday. “Unfortunately, it’s not as simple as just going to the Staples and buying some Sharpies.”

Starbucks plans to bring back self-serve condiment stations to its stores as well. The company removed them at the start of the pandemic in 2020.

“Our customers are asking for it, and our baristas say it would help them” to speed up orders, Niccol said on the call.

It’s part of a slew of changes Starbucks is making under Niccol, who took over the struggling company in September.

Starbucks on Wednesday reported a third straight quarter of declining sales and declining customer visits.

Starbucks’ global sales at stores open at least a year fell 7% last quarter, and the number of customer transactions fell 8%.

“Our financial results were very disappointing,” said Niccol. “It is clear that we need to fundamentally change our strategy to win back customers and return to growth.”

Starbucks drinks with soy, oat, almond or coconut milk will not cost customers any extra.

Starting next week, Starbucks customers will no longer pay to add non-dairy milk to their orders. The company said the abolition of the non-dairy milk surcharge means customers who request it will pay around 10% less than before.

At Starbucks, orders for milk substitutes have increased dramatically in recent years, joining dairy-free alternatives in supermarkets. In 2021, Starbucks added oat milk to its menu. Non-dairy milk has become the second most common order change at Starbucks, after adding a shot of espresso.

Starbucks is also scaling back promotional offers through its mobile app, allowing customers to pay full price for its coffee and tea. Niccol wants to reposition Starbucks as a premium brand that steers clear of discounts.

Although it is scaling back discounts, Niccol said the company does not plan to increase prices next year. Starbucks has raised prices in recent years, causing some customers to turn away from the chain.

Starbucks also said this week it is removing its controversial olive oil drinks from its menu, less than a year after its launch.

The range of ‘Oleato’ drinks will be removed from Starbucks menus in the US and Canada from early November, as part of Niccol’s plans to pare down a menu he recently called ‘overly complex’.