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Key Takeaways
- Since taking over the coffee chain last fall, Starbucks CEO Brian Niccol is busy implementing a turnaround strategy.
- His changes include a revamped cafe, prioritizing the speed of service, bringing handwritten messages back on cups, as well as an updated dress code.
- Recent research by Deutsche Bank suggests that coffee drinkers may be more concerned about price than ever before. Starbucks is scheduled to report its quarterly earnings on February.
The Starbucks (SBUX), makeover continues. It affects both the shops and their staff. Next week, we’ll find out how the customers are reacting.
The “Back to Starbucks”, the company’s campaign to bring customers back to this global coffee chain, continues to evolve as CEO Brian Niccol who took over in the fall of last year continues to change the company’s operations and appearance. Niccol said that in October, “Our problems can be fixed.” “Most things we can do are in our hands.”
The coffee chain is re-designing its cafes so that they feel more welcoming and cozy. They are also prioritizing speed and efficiency by aiming to have customers receive their orders in four minutes.
Sharpies are back at Starbucks, and they’re causing a stir.
Messages on To-Go Cups Are Making a Rebound
If you received a Starbucks order with a smiley or heart on it recently, the barista was probably not flirting with you. Since January, workers were required to write messages and doodles onto every to-go cup. Starbucks did not immediately respond to Investopedia’s request for comment, but The Wall Street Journal recently reported that customer reactions are running the gamut from delighted, to confused— to indifferent.
The person drawing your doodle could also dress differently. Earlier this month, the coffee chain earlier this month announced plans to update its dress code for a “more consistent coffeehouse experience" that bolsters the brand.
Starbucks said: “We are changing our dress code to simplify color options, allowing our iconic green apron shine and creating a sense familiarity for our clients, no matter what store they visit in North America.”
Workers will need to pair the green aprons with either a company-branded shirt (two are provided for free) or a solid dark shirt with khaki or black denim bottoms. Baristas used to be able to wear any top or bottom color with their apron.
A recent survey by Deutsche Bank found that it’s not just the look of the cafes, or the employees, but the price. Starbucks is expected to announce its earnings next week, but shares have fallen about 9% in the past year.
