Starbucks boss’s open letter criticises its coffee and service
Starbucks’ new super-commuting chief executive has said the chain is taking too long to serve coffee to customers, as he vowed to overhaul the company after a tumultuous year.
Brian Niccol, who has drawn criticism over plans to commute 1,000 miles on a private jet from his home in Newport Beach, California to Starbucks’ headquarters in Seattle, Washington, said the chain was not “always delivering”, in an open letter posted on the company website.
From his experience of Starbucks stores, he said: “It can feel transactional, menus can feel overwhelming, the product is inconsistent, the wait too long or the hand-off too hectic. These moments are opportunities for us to do better.”
It comes after Mr Niccol, the former boss of Mexican food chain Chipotle, was parachuted into the top job at Starbucks to replace ousted chief executive Laxman Narasimhan, who left with immediate effect last month less than two years into the role.
In his letter, Mr Niccol pledged to “refocus” Starbucks, turning it back into what he called a “community coffeehouse”.
He said: “People start their day with us, and we need to meet their expectations. This means delivering outstanding drinks and food, on time, every time.”
Shares in the company soared by 25pc following Mr Niccol’s appointment in August, as investors welcomed his previous turnaround record at Chipotle.
However, he has since been subject to an environmental backlash over his super-commute, as critics argue it clashes with Starbucks’ commitment to reduce carbon emissions.
A Starbucks spokesman said last month: “Brian’s schedule will meet or exceed the hybrid work guidelines and workplace expectations we have for all partners. He will also have a residence in Seattle.”
In recent months, Starbucks has been grappling with a combination of falling sales, boycotts over a perceived link with Israel amid the conflict in Gaza, and pressure from activist investors.
Revenues have fallen for two consecutive quarters, by 4pc in the first three months of 2023 and 3pc in the quarter that followed.
In his open letter, Mr Niccol promised to challenge perceptions of the company in the Middle East, where he said it would “work to dispel misconceptions about our brand” in the wake of the conflict in Gaza.
Controversy over Israel arose after Starbucks sued the Starbucks Workers United (SWU) union for trademark infringement last year after the union expressed “solidarity with Palestine” in a social media post.
While the company says it has never given money to Israel or its military, allegations of support on social media have fuelled boycotts and protests. In March, its Middle Eastern franchisee said it would have to sack thousands of workers owing to a downturn in sales.
Starbucks’ shares rose by more than 1pc on Wednesday.
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