Starbucks cups are pictured on a counter in Manhattan, New York, on Feb. 16, 2022.
Carlo Allegri | Reuters
Starbucks CEO Brian Niccol stated the espresso chain plans to purchase about 200,000 Sharpie markers as a part of his plan to take the espresso chain again to its roots.
He is betting that extra private touches — together with bringing again markers to put in writing buyer names or messages on cups — will convey prospects again to cafes. For 3 consecutive quarters, the corporate has reported declining gross sales. In Starbucks’ latest quarter, reported Wednesday, site visitors to its U.S. shops tumbled 10%.
Some prospects suppose the espresso chain has drifted too removed from its core, based on Niccol.
Whereas the corporate works on a extra complete turnaround technique, Niccol unveiled some preliminary steps the corporate is taking to rebuild the Starbucks model in its dwelling market. However even one thing as small as a marker is not a simple activity for Starbucks, which has practically 17,000 areas within the U.S.
“I believed the quantity I heard was one thing like near 200,000 Sharpies we have to trace down,” Niccol stated in an interview with CNBC’s “Squawk Box.” “Sadly, it is not so simple as simply going to the Staples and selecting up some Sharpies.”
Different adjustments coming to U.S. cafes embrace the return of ceramic mugs, condiment bars and comfy furnishings.
Niccol, who joined the corporate in early September, stated he needs the chain to develop into a “third place” once more, referencing the idea of a spot to work and socialize exterior of the house or workplace.
For many years, Starbucks positioned itself as a spot to linger, however the firm has misplaced that sheen over time.
Niccol stated he is additionally aiming to enhance staffing at shops and minimize service instances for each order to beneath 4 minutes.
Shares of Starbucks have risen about 1% this yr, trailing the S&P 500’s positive factors of twenty-two%. The corporate has a market cap of $110 billion.
— CNBC’s Jacqueline Corba contributed reporting for this story.