On 24 February, Starbucks announced it would cut 1100 corporate roles amid falling sales, and simplify its menu in the United States (US) for “a better Starbucks experience”.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” CEO Brian Niccol said in a letter to employees.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”
On assuming the CEO role in August 2024, Niccol pledged to get the company back on track, publishing an open letter promising to “refocus on what has always set Starbucks apart”. At the time, the company’s shares had lost 40 per cent of their value from the 2021 high due to weak demand in the US and China.
The company also announced that from 4 March it will simplify its menus and remove less popular items, including several Frappuccino blended beverages, the Royal English Breakfast Latte and the White Hot Chocolate.
In a statement, the company said: “We’re simplifying our menu to focus on fewer, more popular items, executed with excellence. This will make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company.
“Additional beverages and food will exit Starbucks menu throughout the coming months, resulting in a roughly 30 per cent reduction of menu items by the end of fiscal year 2025 in the US, to make way for innovation. This spring, we’re excited to bring back the beloved Lavender beverages and will also introduce a new Iced Cherry Chai and Jalapeño Chicken Pocket.”
Prior to taking on the Starbucks CEO role, Niccol was the Chairman and CEO of Chipotle Mexican Grill, an international chain of fast-casual restaurants.
