Starbucks CEO Aims to Win back‍ Customers and ⁣Employees

​ ​ Updated June 15, 2025

Starbucks is betting on a new ​strategy ⁣to lure back customers and reassure investors. CEO Brian Niccol is focusing on improving the in-store experience and boosting employee morale.‌ The company ⁢plans to add more seating to its cafes ⁢and ⁣increase internal promotions, aiming to recapture the essence of what made Starbucks a cultural phenomenon.

Niccol, who took the helm ‍in ⁢September ‌2024, ‌has​ pledged to bring the company ​”back to Starbucks” to combat sluggish sales. This vision was on⁣ full display at the recent Leadership ‍experience in Las ⁤Vegas, an event ​attended by over 14,000 store leaders. The event showcased a new coffee blend,⁤ the 1971 Roast, a ⁤nod⁤ to ⁤the year Starbucks’ first ⁤store opened.Even the wifi password reflected the renewed ‌focus: “backtostarbucks!”.

Niccol has outlined a multi-pronged strategy to ⁢investors.this includes revamping‌ marketing, ‌improving cafe staffing, fixing‌ mobile app issues,‌ and creating more inviting locations. Earlier this⁤ year, Starbucks laid off approximately 1,100 corporate employees​ to streamline‍ operations and eliminate redundancies. Since Niccol’s appointment, Starbucks shares have risen nearly 20%.

Beyond Wall Street,‌ Starbucks is working to regain the trust ‌of its employees. Concerns about​ hours and workloads have fueled a unionization​ push across the U.S. To address these⁤ concerns,⁤ Starbucks executives are giving store managers more control.New⁤ drinks, like a ⁤protein-packed⁤ cold foam, are being​ tested in select stores to gather barista feedback. Managers ⁤will also have greater input on staffing levels, and most north American stores⁤ will​ add an assistant manager next‌ year.

“You are the leaders of Starbucks,” Niccol said. “Your focus on the customer is critical. Your leadership is critical. And as you return to your coffeehouses, please remember: coffee, community, chance, all the good that follows.”

A​ Culture Shift for Starbucks

Niccol’s “back ⁤to Starbucks” strategy acknowledges a perceived decline in the company’s culture. The Leadership Experience, the first ⁢since 2019, aimed⁢ to reconnect with the company’s core values.”We are a business of connection and humanity,” Niccol emphasized. “Great people make great ⁤things⁣ happen.”

The rise of mobile ‍ordering has inadvertently ‍transformed Starbucks cafes, diminishing their role as a “third place” for socializing. To reverse this trend, Starbucks is reversing previous decisions, such‍ as removing ‌seating. The chain had removed 30,000‍ seats in recent years, a move that frustrated‌ both ‌customers ​and employees.⁣ “We’re going to put ⁢those seats back⁣ in,” Niccol⁤ announced, ⁣drawing enthusiastic applause.

The plan to promote internally also resonated with the audience. While historically‍ about 60% of starbucks store managers have been promoted from within, the company ⁤aims to ​increase that figure to 90% for​ retail leadership roles. With plans to add 10,000 more locations in the U.S., this‌ translates to significant career advancement opportunities for store leaders.

Addressing staffing concerns, Starbucks is accelerating the rollout of its new green Apron labour model. Tests have shown that this model improves service times and increases ⁣customer‌ traffic. Managers will have more say‌ in determining ‌their store’s ‌labor needs. Furthermore, the declaration of a dedicated assistant store manager for most North American locations next year was met with a standing ovation.

Chief Partner ‌Officer Sara Kelly acknowledged the challenges faced⁢ by⁤ store managers:‌ “For much of the time, your store is operating without you there, and you share that even when you’re not in the store, you’re not able to fully disconnect, and it ⁤can feel like the weight of everything is on your shoulders… It affects ⁤everything, the partner experience, the customer experience, the performance of your store.”

schultz’s Stamp ‍of Approval

Underscoring the⁢ importance of Niccol’s mission, former chairwoman Mellody Hobson and former CEO Howard Schultz, both highly regarded figures within Starbucks, received standing ovations at the event. ⁢Hobson, who stepped down earlier this year, ⁤was‍ thanked for her years of service. Schultz, who made a surprise appearance, publicly endorsed Niccol’s plan.

Schultz’s ⁢presence was particularly noteworthy given past questions about succession at Starbucks.His endorsement of Niccol’s “back to Starbucks” strategy signals a potential turning point⁣ for the company. Schultz recounted doing a “cartwheel” upon hearing about the plan and urged managers to bring that same energy back‍ to their stores.

“Be⁤ true to the coffee, be true to your partners,” Schultz ​advised.”And I know we’re going to come out ​of here… like a tidal wave and surprise and delight the world and prove all those cynics wrong again, just as we did in ⁢1987.”

what’s next

Starbucks’​ success hinges on effectively implementing ​these changes. The company must balance ⁣the needs of its customers, employees, and investors to achieve sustainable growth ‍and recapture its former glory. The coming months will reveal whether Niccol’s vision can truly bring ‍Starbucks back to its roots.