Starbucks discontinues highly customized drink orders, now offering standard options only

After three consecutive quarters of decreasing same-store sales, Starbucks’ new CEO Brian Niccol is implementing some changes, including reducing highly customized drink orders.

Both customers and baristas have been complaining for years about the highly customized drinks and the delays they can cause in efficiently fulfilling orders. In an effort to achieve Niccol’s goal of delivering every order to customers within four minutes or less, the company aims to simplify customizations.

To make things simpler for both customers and employees, the company will introduce “common sense guardrails” for customizations on its mobile app, Niccol announced during Starbucks’ fiscal fourth-quarter earnings call on Wednesday. He mentioned that the current mobile custom ordering system causes issues for both customers and baristas.

“One, it’s complicated for the customer to navigate. And two, we encourage people to customize drinks in ways that may not be the most efficient. Additionally, it adds complexity for our partners to make the drinks. So we have some clean-up to do,” Niccol explained.

These changes will enhance consistency and help eliminate surprises in pricing for highly customized drink orders that could end up more expensive than a regular drink, the CEO stated.

Starbucks’ menu adjustments are not limited to drinks; the coffee chain’s food offerings are also set for a revamp. Niccol mentioned that in order to prioritize quality over variety, Starbucks will be removing some of its food items.

“I believe we will excel in the food department by offering fewer items of better quality,” he added.

A Starbucks spokesperson informed Fortune in a statement that the coffee chain was streamlining its menu to align with its core identity as a coffee company.

See also  Investing.com reports Goldman Sachs' Buy rating on Meta with a price target of $636.

“We continue to provide customers with great choices. By focusing on fewer, superior products, we anticipate improvements in efficiency, quality, and consistency,” the spokesperson explained.

In addition to the menu changes, Starbucks will be reintroducing condiment bars stocked with milk and sugar to its stores starting next year. The condiment bars had largely been removed from Starbucks locations due to the COVID-19 pandemic.

To expedite in-store orders, Niccol wants a simple drip coffee to be ready almost immediately after ordering and handed to customers by the cashier. Customers can then customize their coffee at the condiment bar with milk and sugar to their preference.

“Our customers have been requesting it, and our baristas believe it will help them provide the speed of service they aim for,” Niccol explained regarding the condiment bars.

Niccol transitioned from Chipotle to Starbucks in September, receiving a $113 million salary and remote work privileges in exchange for revitalizing the struggling coffee chain. However, he faces a challenging task.

Despite Niccol’s ambitious future plans, the company’s shares dropped by less than 1% on Thursday after falling short of analyst expectations in its fiscal fourth-quarter earnings report. The company reported a 7% decrease in global comparable same-store sales and a 6% decline in sales in North America and the U.S. This marks the third consecutive quarter of declining sales for the company.

The changes in food and drinks are part of Niccol’s strategy to restore Starbucks’ reputation as a “third place” and cultivate a “coffee house vibe” to encourage customers to linger. The CEO expressed the company’s intention to refocus on the in-store customer experience. As part of this initiative, Starbucks will switch to ceramic mugs for certain in-store drinks and return sharpies to baristas so they can add personalized touches to drink orders.

See also  BRICS summit held in Russia, promotes new global agenda to challenge the West

“I believe that simple gestures can go a long way in conveying that this is a community space, a special place where people come together to connect,” he stated.