Starbucks CEO Niccol Says Turnaround Focuses on Store Renovations After More Than 1,000 Refits

Starbucks Chief Executive Brian Niccol said the next phase of the company's turnaround will focus on store renovations and improvements to the customer experience. The company previously introduced a program called "Back to Starbucks," emphasizing better experiences for customers and baristas and seeking to win back loyal customers it had lost. At the same time, competitors are trying to attract coffee drinkers with lower prices and greater convenience.

The current phase of the turnaround centers on renovating coffeehouses. Niccol said more than 1,000 stores have been renovated over the past nine months, and the company plans to renovate several thousand more in the next fiscal year. Most renovations include adjustments such as adding seating and using softer lighting, with the aim of making stores friendlier for customers and restoring the atmosphere of the coffeehouse. Another key measure is continuing to improve the customer experience. More than a year ago, the company began training baristas and introduced the "Green Apron Service" program to encourage more positive interactions with customers.

The "Back to Starbucks" strategy has begun to show up in operating data. The company's third-quarter same-store sales rose 7.9%, driven mainly by strong performance in the United States. In a September 10 memo to employees, Niccol said the company has returned to growth, with global same-store sales positive and margins improving. Since Niccol was announced as the next chief executive in 2024, the company's share price has risen about 30%; over the same period, the S&P 500 gained 42%.