Starbucks New CEO: "We Will Return to the Original Starbucks Identity"

Brian Niccol, the newly appointed CEO of Starbucks, the world's largest coffee chain, emphasized on the 10th (local time) that he will return Starbucks to its original form.

[Image source=AP Yonhap News]

According to foreign media such as The Wall Street Journal (WSJ), who took office as Starbucks CEO on the 9th, he said in a letter sent to customers and employees on the same day, "I am making a promise today. We will return to the (former) Starbucks." He expressed his determination to restore Starbucks, which has fallen into poor performance, to its former state by improving services and supply chains.

He pointed out the current problems of Starbucks, saying, "In some regions, especially in the United States, we have not always provided satisfactory service," adding, "The menu is complicated, product quality is inconsistent, wait times are long, and the process of receiving ordered items is confusing."

In response, CEO Niccol stated, "During the first 100 days of my tenure, I will focus on improving the U.S. business." He continued, "We will improve baristas' working conditions, invest in technology to make drinks faster, make the supply chain more efficient, and upgrade the app and mobile ordering." He emphasized, "This is our plan for the U.S., and it is the area I need to focus on initially."

He also revealed plans to invest in overseas businesses, including China, the second-largest market after the U.S. Starbucks has been struggling due to intensified competition in China amid the Guochao (patriotic consumption) trend. He stated, "Starbucks recognizes the importance of the Chinese market and plans to establish strategies for success in this market by leveraging its strengths."

Additionally, he mentioned efforts to "resolve misunderstandings about the Starbucks brand" in the Middle East. After the Israel-Hamas war in October last year, Starbucks became a target of boycotts mainly in the Middle East due to claims that Starbucks supported and funded Israel.

Niccol, who previously served as CEO of the fast-food chain Chipotle Mexican Grill, was appointed as Starbucks' savior, succeeding former CEO Laxman Narasimhan, who resigned on the 13th of last month taking responsibility for poor performance. On the same day, Starbucks' stock price closed up 1.23% compared to the previous trading day on the New York Stock Exchange.