Starbucks CEO Unveils Turnaround Strategy

Starbucks' new CEO, Brian Niccol, outlined a comprehensive turnaround plan during his first earnings call, emphasizing a goal of reducing customer wait times to four minutes or less while maintaining quality. Following disappointing financial results, including a 1% year-over-year revenue decline to $9.1 billion, Niccol acknowledged the need for a strategic overhaul to regain customer trust and spur growth. Key reforms include simplifying the menu, upgrading store environments, and eliminating surcharges for milk alternatives, aimed at making coffee more accessible. Additionally, Starbucks plans to enhance service efficiency by potentially increasing staffing levels and providing ceramic mugs in-store. Investor confidence appears strong, with shares rising approximately 26% since Niccol's appointment. The company has suspended its 2025 financial outlook, indicating a critical transition period ahead.