When Brian Niccol took over as CEO of Starbucks 18 months in the past with the intention to return the corporate to its glory days of the Nineties and early aughts, he was shocked to see the espresso chain felt extra like a manufacturing facility flooring than a heat hangout spot.
In an current episode of Semafor’s “The CEO Signal” podcast, Niccol stated when he first took the helm of the corporate in late 2024, he visited a number of shops and observed the espresso chain had put a lot emphasis on fulfilling massive volumes of orders it had strayed from its status as a comfy espresso home. Niccol’s “Back to Starbucks” plan launched in his first days as CEO was meant to revive Starbucks to its roots as a “third place” for patrons to linger in.
“We got really focused on trying to be efficient and run it like a manufacturing facility, as opposed to recognizing, no, this is actually a customer service experience, where we do great craft and create great drinks for people on time,” Niccol stated.
Though Starbucks inventory is nearly unchanged since Niccol took over a year-and-a-half in the past, the previous Chipotle CEO has been working arduous to revive that sure attraction that after belonged to “the third space.” He discovered that Starbucks had an excessive amount of of factor.
A to-go tradition gone too far
Niccol got here into an organization that was in some methods battered by the success of its well-liked on-line ordering, nonetheless answerable for a lot of the chain’s orders, together with 40% drive-thru and 30% cell. In early 2024, then-CEO Laxman Narasimhan stated prospects have been abandoning their on-line orders after putting them on-line, having to attend in lengthy strains for his or her orders to be fulfilled throughout busy commuting hours. The Starbucks menu was massive, and patrons’ means to customise their orders overwhelmed baristas and slowed down order success.
Early in his tenure, Niccol spoke with prospects who lamented the shortage of snug seating Starbucks places as soon as had, in addition to baristas recognizing and chatting with them. Baristas advised Niccol Starbucks ought to deliver again condiment bars to let prospects add their very own cream and sugar, relieving stress from employees fulfilling extra sophisticated orders.
“The feedback I heard was, we’ve made the job more complicated than necessary,” Niccol stated. “It was one of those things where it’s like, we got to get back to focusing decisions that actually show up in the store, and then you got to understand how those decisions actually are executed in the store.”
The corporate took these strategies, amongst others, returning seats to hundreds of retailer places and returning condiment bars after their pandemic-era discontinuation.
To date, the “Back to Starbucks” plan seems to be working. The corporate reported a 4% improve in year-over-year same-store gross sales, and a 5% uptick in income for the quarter. Earnings took a success as the corporate navigated tariffs and introduced on extra employees to workers its shops.
“We’re pleased with our progress, and we believe we remain ahead of schedule, and we’re confident on our path forward,” Niccol advised buyers in January. “But we also recognize that we’re still in our turnaround.”
The street again to Starbucks
On the core of the raft of modifications to the Starbucks expertise was making the chain as a lot about customer support as about espresso, Niccol famous.
“f you aren’t working on initiatives that ultimately make the store experience better for our customer and our partner, probably working on the wrong things,” he stated.
Niccol rolled out the “Back to Starbucks” plan by a sequence of quick shifts adopted by extra structural modifications. Places activated extra wall shops and commenced giving ceramic cups to prospects who needed to take a seat within the retailer for some time. Baristas have been advised to write down personalised messages on paper to-go cups. Staff have been additionally required to start carrying black shirts below inexperienced aprons as a part of a model refresh.
Behind the counter, Starbucks slashed menu gadgets by 30% to lighten the load of baristas. It rolled out an AI-powered assistant designed to troubleshoot gear points, educate baristas tips on how to make drinks, and prioritize orders to extend effectivity.
To make certain, not all baristas are on board with the modifications. Greater than 1,000 union baristas went on strike in November 2025, demanding Starbucks improve staffing to enhance lengthy buyer wait time, in addition to let present baristas work extra hours to satisfy the brink for advantages. Final Might, greater than 2,000 baristas protested the corporate’s costume code and argued employees ought to have a say in what they put on.
Starbucks didn’t reply to Fortune’s request for remark.
Niccol stated the “Again to Starbucks modifications have already shifted the corporate’s status. In an interview on the Wall Avenue Journal Management Institute in December 2025, Niccol stated he was studying by a Reddit thread of Starbucks job candidates interviewing on the firm, with some customers asking what interview questions they need to put together to be requested. Different customers, presumably Starbucks workers, stated candidates ought to be ready to speak about customer support.
“If you don’t like customer service, you’re probably not going to like working at Starbucks. We’re in that transition of getting people to understand that,” Niccol stated. “When I saw that in the Reddit thread, I was like, ‘OK, we’re making progress on what the standard of services that we want [are].’”
