Starbucks CEO Brian Niccol, a year into the job, says the coffee chain is “ahead of schedule” in its turnaround. But the work is far from over — he’s betting on an “aggressive” redesign, enhanced rewards program and an array of new food and beverage items to drive momentum and reverse the decline in traffic.
“I think we’re really close on the fundamentals. Then what you can do is, once you have the fundamentals in place, you can innovate from a place of strength. And you’re going to see us innovate in the menu. You’re going to [see] us innovate in our rewards program. You’re going to see us innovate digitally. And I’m excited about what all these things provide as far as another layer of growth,” Niccol told FOX Business during an interview Monday, adding that the company’s new store design will also make it possible for the company to open more locations.
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Monday marked exactly one year since the industry titan took on the challenging task of turning around the world-renowned coffee giant. While it’s not Niccol’s first turnaround, as he helped Taco Bell and Chipotle weather their own storms. He became Starbucks’ third CEO in two years, inheriting a company that faced pressure from unionization campaigns across the nation and back-to-back disappointing fiscal quarters as traffic declined a year ago.
Starbucks stores in the U.S. have continued to see a decline in store visits during a time when broader environmental factors have caused consumers to be more mindful of where they spend money. But Niccol emphasized his confidence in the company’s trajectory, noting that several initiatives have been rolled out faster than he initially expected, including a new protein menu coming at the end of September and the Green Apron Service model. That service model leverages tools such as its Smart Queue to sequence orders across mobile pickup, drive-thru and café so they don’t compete with each other, effectively decreasing wait times for customers.
Since introducing the new store model a few weeks ago, Niccol said 80% of Starbucks drinks are now ready in under four minutes, which he noted is a “substantial improvement” from the roughly 60% before the rollout. Mobile orders are now surpassing 95% within that four-minute benchmark, a goal Niccol set soon after taking the helm.
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Niccol didn’t say whether the company might lower or adjust prices in the near future. Instead, he said that Starbucks is focused on boosting its value proposition for customers. The company’s value, he argued, lies in its high-quality coffee with a distinctive coffeehouse experience.
“I think the thing that’s really important is we give people the drinks and the experience that they want and in the environment that I think distinguishes Starbucks, right? And that’s the coffeehouse environment,” he said.
He pointed to the company’s access to top beans, its unique Clover Vertica brewing system that delivers freshly ground and brewed coffee and the personal connection customers receive from baristas.
What to expect in year two of the turnaround:
The re-design:
Niccol said the company is getting “a lot more aggressive on redoing our coffee houses.” That redesign will allow the company to open more locations.
He projected that thousands of locations across the country would be redesigned throughout 2026. There are more than 17,000 locations in the U.S. In 2027, “we’ll see if we can go even faster than that… and then the goal is never get behind on this again,” Niccol said.
The goal isn’t to impose time limits or rush customers in and out. Instead, Niccol is encouraging them to stay a while.
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“If we’ve got a space that you want to stay, then we’re doing our job. Because that means our partners are connecting. That means the seat is a good seat,” he said. “That means, the vibe is right. And you feel good about Starbucks. You feel good about being a part of the brand. Whatever time you ultimately decide to get up and go, that’s on your time.”
The new look will feature a mix of oversized chairs, couches, high-tops and regular tables that are designed to offer “a seat for every occasion,” according to Niccol.
Niccol said the company is also re-evaluating the size of its stores to lower the company’s overhead.
“We’re working on getting the building cost to be more cost-effective,” he said. “So I think some of that got away from us. We were making the buildings too big. We’re putting in unnecessary equipment. When, in fact, what we really needed to do was have a great coffee house with some great seats, staff with the right number of partners, and then set them up with the rate number of labor hours so that they can be in the right position at the right time for those customers.”
If all of those metrics are met, Niccol said Starbucks can build stores that are cheaper to open and more efficient to operate.
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Mobile ordering:
Niccol said the company is using technology that sequences orders across mobile pickup, drive-thru and café. In other words, it tells partners which drinks to make when, improving on-time accuracy for mobile orders, especially during peak hours.
New food
Aside from innovating the company’s drink menu, Niccol said there is a “real opportunity” for the company to enhance its food offerings, too. While the company is still figuring out what food it will add, Niccol hinted that there will be a “variety when it comes to breakfast sandwiches, afternoon snacks and real biteable” food.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 84.17 | -1.26 | -1.47% |
“Obviously on trend right now is more snackable, protein-forward, some gluten-free products,” he said. “So I am really excited about what we can do on the food front as well.”
At the beginning of the new year, the company is also planning to enhance its rewards program. It is still in the development phase, although Niccol expects it to roll out in early 2026.
“I stand by the fact that we’re ahead of schedule, and I’m excited about finishing out this fiscal year really strong and heading into 2026 from a position of strength,” Niccol said.
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