Latest news with #LeadershipExperience
Axios
9 hours ago
- Business
- Axios
Axios interview: Starbucks' big regret and the plan to fix it
LAS VEGAS — Starbucks CEO Brian Niccol tells Axios that one of the company's biggest missteps was pulling back on in-store seating — and now he's making it a top priority to fix it. Why it matters: "We had this strategy that I think was just a misfire of a purpose-driven store. It's like, well, the purpose is community connection," Niccol said. "I think that's what got us off our game." "We've got to get the seats back," he said in an interview at the company's Leadership Experience event in Las Vegas. The big picture: Under Niccol — who joined from Chipotle in September — Starbucks has been making a series of changes to reverse a decline in foot traffic and sales as part of what it calls the "Back to Starbucks" plan. After years of prioritizing digital orders and drive-thrus, Starbucks is looking to create community spaces with more seating, bringing back ceramic mugs and adding new menu items, Niccol said. He tells Axios that the company has been making progress, but it might take time before the results show up in earnings. "I hope sooner rather than later," he said. Zoom in: Niccol called Starbucks' iconic Pumpkin Spice Latte a "fastball" and said the company has to create new "fastballs for the business." Some of the products being tested like a "chocolate protein cold foam," banana bread lattes and food that's baked in stores, he said. "It's significantly better and it also just looks delicious," he said of two croissants and a double chocolate cookie being tested. We got to innovate on those things." What's next: Starbucks is rolling out a "Green Apron Service Model" to stores by the end of the summer, Niccol said, which it hopes will speed up the time it takes to make drinks. The company's goal: a 4-minute wait time for drinks. The company announced this week it will add full-time assistant managers across the U.S. to help busy stores run more smoothly. "We're going to have innovation to our app, our rewards program, and that will happen over the next six to nine months," Niccol told Axios. The intrigue: Niccol's turnaround plan has the support of former Starbucks CEO Howard Schultz, who said Wednesday that he "did a cartwheel in my living room" the first time he heard about the strategy. "It was so brilliant. It's short, to the point and it's exactly to the tip of the spear who we should be and who we are," Schultz said from the stage. "And we are, above all else, a coffee company."
Axios
a day ago
- Business
- Axios
Starbucks crowns first-ever global barista champion
LAS VEGAS — Starbucks crowned its first global barista champion Wednesday in a competition that tested coffee knowledge, technical skills and customer connection. The big picture: The three-day competition held in Las Vegas featured 12 baristas from around the world, narrowed down from over 84,000. The final round took place before an audience of more than 14,000 Starbucks store managers and employees during the Seattle-based company's Leadership Experience event in Las Vegas. Zoom in: The winner was Nobuki from Japan, who now has the chance to create a beverage that will go into Starbucks across the U.S. (Full names for the winner and finalists were withheld by Starbucks for privacy.) Baristas were tested on latte art, presenting their signature beverage while also connecting with the judges with storytelling. "The first step is sparkling smile," Nobuki said during the competition on how to make a latte. "Yes, I'm serious. When we smile, everything tastes so much better." For latte art, Nobuki made a rosetta design and then a tulip. His signature drink was the Blooming Yuzu Espresso, which he uses a Japanese sauce to make. Between the lines: One finalist represented Europe, Middle East and Africa, another represented the Tokyo Reserve Roastery and the last represented the Shanghai Reserve Roastery in China.
Fast Company
a day ago
- Business
- Fast Company
Starbucks just developed an ingenious way to add 15 grams of protein to almost any drink
BY Since Brian Niccol took over as Starbucks CEO last September, he's been promising to counter slow sales by revitalizing the company's commitment to being a 'third place'—a space where customers sit and stay a while. But in the short term, his bigger win may come in the form of foam. At the Starbucks Leadership Experience event in Las Vegas this week—a gathering of some 14,000 Starbucks managers and employees—the company unveiled a more appealing food menu. The new additions include a flakier fresh-baked croissant (which tasted better than the company's current option, but not Parisian level) and a double chocolate cookie (rich, though quite salty). But even more interesting and important than the changes to the food menu is Starbucks's new trick that can turn any coffee into a protein-packed meal. Protein Cold Foam could be Starbucks's most important innovation since the Pumpkin Spice Latte. Experientially, it's indistinguishable from the cold foam you know, but it's loaded with somewhere between 15 and 18 grams of protein. Cold foam—in flavors like vanilla and salted caramel—is already one of Starbucks's most popular coffee add-ons. The company is now using that topping to tap into our insatiable appetite for protein. In 2024, 61% of consumers increased their protein intake, up from 48% in 2019, according to a recent study from food giant Cargill. Today, everything from candy bars and snack chips to sparkling beverages are jumping on the 'proteinization' trend, promising a boost for a populace convinced that the more protein in one's diet, the better. Starbucks observed consumer behavior, too: Customers have been bringing their own protein mixes through their morning drive-through, and stirring or shaking them into Starbucks drinks. So Starbucks developed a proprietary unsweetened protein blend. It's somewhat reminiscent of the company's now discontinued Vivanno smoothie, a frozen blended coffee drink loaded with whey protein that I adored but a representative admits was 'ahead of its time.' But this time, instead of mixing the protein into a smoothie, Starbucks wanted to put it into a larger swath of menu items. The problem? Starbucks originally imagined this new protein blend would simply mix into drinks, and it kept getting clumpy (a problem that will be familiar to any protein powder fan). The Starbucks development team set up in a test store two weeks ago to work the problem out. As it turned out, blending the powder into foam got rid of the clumps. (I imagine it's technically an emulsification, in which dairy fats wrap their way around any gritty particles.) While that makes for a nice story, I was skeptical as Starbucks reps brought out the company's new Banana Protein Cold Foam for a taste test. Only when I took a sip did I believe: It was silky, sweet, and not at all chalky. I never would have known it had a meal's worth of protein inside. The banana flavor smacked me on the lips—strong, sweet, but mellow once I stirred it in. Starbucks is tight-lipped about when the Banana Protein Cold Foam will begin appearing on menus, but says it will also be available in flavors like chocolate (and even unflavored) down the line. I can imagine any cold foam getting a protein version, transforming an indulgence into a semiresponsible snack. Reframing the $8 morning coffee into a more nourishing meal is a smart way to keep people coming back at a time when many Americans are feeling their wallets pinched. Starbucks's North American same-store sales fell 1% for the quarter than ended on March 30, and by 4% during the last four months of 2024. The average ticket size, however, has been growing—by 4% and 3% for the past two quarters. The new cold foam could help drive people into stores, as well as boost the cost of their drinks, depending on how it's priced. 'This thing is going to be a rocket,' Niccol said on stage in Las Vegas, introducing the new menu item to his employees. 'It's on trend. It's delicious.' And I have to say, I'm inclined to agree.
NBC News
a day ago
- Business
- NBC News
Howard Schultz says he 'did a cartwheel' when Starbucks CEO Niccol coined 'back to Starbucks' strategy
LAS VEGAS, NEV. — Former Starbucks CEO Howard Schultz said Wednesday that he 'did a cartwheel' in his living room when current chief executive Brian Niccol first coined his 'back to Starbucks' strategy. The enthusiasm from the 71-year-old Starbucks chairman emeritus is a key stamp of approval for Niccol as he tries to lift the company's slumping sales and restore the chain's culture. Schultz, who grew Starbucks from a small chain into a global coffee giant, made a surprise appearance at the company's Leadership Experience in Las Vegas and cosigned Niccol's plans. The three-day event has gathered more than 14,000 North American store leaders to hear from Starbucks management as the company embarks on a turnaround. Niccol took the reins in September, joining the company after the board ousted Laxman Narasimhan, Schultz's handpicked successor. Schultz had returned in 2022 for his third stint as chief executive, but it was only an interim role. He previously told CNBC that he has no plans to come back again. Schultz no longer holds a formal role within the company, although CNBC has previously reported that he's forever entitled to attend board meetings unless barred by the company's directors. During Niccol's first week on the job, he outlined plans for the comeback in an open letter, making the commitment to get 'back to Starbucks.' More details on how the chain planned to return to its roots followed in the ensuing months, from bringing back seating inside cafes to writing personalized messages on cups. Under Niccol's leadership, the company's marketing has shifted to focus on its coffee, rather than discounts and promotions. When Starbucks announced Narasimhan's firing and Niccol's hiring, Schultz issued a statement of support, saying that the then-Chipotle CEO was the leader that the company needs. However, the Leadership Experience marks the first time that Niccol and Schultz have appeared publicly together. During Narasimhan's short tenure as CEO, Schultz did not mince words when the company's performance fell short of his expectations. After a dismal quarterly earnings report, he weighed in publicly on LinkedIn, saying the company needs to improve its mobile order and pay experience and overhaul how it creates new drinks to focus on premium items that set it apart. But Schultz said Starbucks' problems went further than just operational issues and lackluster beverages and food. 'The culture was not understood. The culture wasn't valued. The culture wasn't being upheld,' he said on Wednesday.
CNBC
a day ago
- Business
- CNBC
Howard Schultz says he 'did a cartwheel' when Starbucks CEO Niccol coined 'back to Starbucks' strategy
LAS VEGAS, NEV. — Former Starbucks CEO Howard Schultz said Wednesday that he "did a cartwheel" in his living room when current chief executive Brian Niccol first coined his "back to Starbucks" strategy. The enthusiasm from the 71-year-old Starbucks chairman emeritus is a key stamp of approval for Niccol as he tries to lift the company's slumping sales and restore the chain's culture. Schultz, who grew Starbucks from a small chain into a global coffee giant, made a surprise appearance at the company's Leadership Experience in Las Vegas and cosigned Niccol's plans. The three-day event has gathered more than 14,000 North American store leaders to hear from Starbucks management as the company embarks on a turnaround. Niccol took the reins in September, joining the company after the board ousted Laxman Narasimhan, Schultz's handpicked successor. Schultz had returned in 2022 for his third stint as chief executive, but it was only an interim role. He previously told CNBC that he has no plans to come back again. Schultz no longer holds a formal role within the company, although CNBC has previously reported that he's forever entitled to attend board meetings unless barred by the company's directors. During Niccol's first week on the job, he outlined plans for the comeback in an open letter, making the commitment to get "back to Starbucks." More details on how the chain planned to return to its roots followed in the ensuing months, from bringing back seating inside cafes to writing personalized messages on cups. Under Niccol's leadership, the company's marketing has shifted to focus on its coffee, rather than discounts and promotions. When Starbucks announced Narasimhan's firing and Niccol's hiring, Schultz issued a statement of support, saying that the then-Chipotle CEO was the leader that the company needs. However, the Leadership Experience marks the first time that Niccol and Schultz have appeared publicly together. During Narasimhan's short tenure as CEO, Schultz did not mince words when the company's performance fell short of his expectations. After a dismal quarterly earnings report, he weighed in publicly on LinkedIn, saying the company needs to improve its mobile order and pay experience and overhaul how it creates new drinks to focus on premium items that set it apart. But Schultz said Starbucks' problems went further than just operational issues and lackluster beverages and food. "The culture was not understood. The culture wasn't valued. The culture wasn't being upheld," he said on Wednesday.
