On Sept 9, 2024, Brian Niccol became the new CEO of Starbucks, quickly announcing plans for a “Back to Starbucks” turnaround. In doing so, he pledged to improve the Starbucks experience for both customers and baristas, by focusing on what made the company successful in the first place.
Two years later, Niccol has provided an updated vision of the Starbucks turnaround. In an interview with CNBC, Niccol said that the company plans to upgrade 1,500 Starbucks stores by the end of the fiscal year: “We’re probably about 9 months in. We’ve touched well over 1,000. By the time we get to the end of our fiscal year, we’ll probably close in on 1,500 or more, and then we’ll do thousands more in our next fiscal year.”
Starbucks aims to renovate up to 9,000 of its company-owned stores in North America in an effort to reinvigorate its “third place” concept. This idea, in which Starbucks is a place to spend time away from work and home, was foundational to the brand’s initial success. The so-called “uplifts” will cost roughly $150,000 per store, involving the addition of rugs, comfortable chairs and plants.
Another key part of the Back to Starbucks strategy will be a focus on improving the customer experience. As well as making sure each store is sufficiently staffed, the company will train baristas on how to create a more engaging experience for customers.
Thus far, the Back to Starbucks strategy has been a success for the company. Performance in the U.S. has improved this year, with the company’s sales rising 7.9 percent in the third quarter of this fiscal year. Niccol appears to be buoyed by the success of his strategy. In a recent memo to employees, he wrote, “As a result of this work, our business has made the turn. We have returned to growth, delivered positive global comps and improved margins. We have positioned Starbucks to perform for the long term.”