Starbucks reported her third quarter in a row of the drop in US sales on Wednesday.
To turn things around, Starbucks' The new CEOBrian Niccol, is making several changes to the company's menu, atmosphere and customer service, including the removal coffee drink with olive oil AND no extra charge for non-dairy milk since November 7.
Starbucks is also now buying 200,000 Sharpie markers for nearly 17,000 U.S. locations so employees can write customers' names or personalized messages on cups.
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“It will give them the opportunity to put that extra human touch into any coffee experience,” Niccol said Starbucks fourth quarter earnings call on Wednesday.
Brian Nicol. Credit: Robin Marchant/Getty Images
Other changes include offering customers who stay to drink coffee with a choice of one ceramic mugand bringing back the spice bar by early next year so customers can put their own milk and sugar in their coffee.
The goal is to make Starbucks feel more like a “third place” or a place where people want to sit — so comfortable seating and redesigned layouts will also appear at Starbucks in the coming months.
“We're reclaiming the third spot so our coffee shops feel like the welcoming coffee shops our customers remember,” Niccol said on the earnings call.
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The changes follow what Niccol called a “very disappointing” quarter for Starbucks. Revenue fell 3% from the same time last year to $9.1 billion, and store traffic fell, particularly in the afternoon. A 6% decline in US sales accounted for most of the revenue decline.
Niccol stated that to make a comeback, Starbucks would have to return to its roots.
“We need to get back to what has always set Starbucks apart,” he said. “A welcoming cafe where people gather and where we serve the finest coffee handcrafted by our skilled baristas.”
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