STARBUCKS has promised to make major changes to its menu and prices in an attempt to win back customers and boost dwindling sales.
In a video message, Starbucks chairman and CEO Brian Niccol said the company will simplify its “overly complex menu”.
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He added that the coffee chain will fix its “pricing architecture” and “ensure that every customer feels Starbucks is worth it”.
He also outlined a vision to return to the welcoming atmosphere of early Starbucks locations.
The strategy is a bid to win back customers who are visiting less often, which has caused sales to tumble.
To succeed Niccol said the chain will address staffing issues in its cafes, remove bottlenecks and simplify things for baristas.
It will also improve the mobile order and pay system so it does not overwhelm the cafe experience.
“We know how to make these improvements, and when we do, we know customers will visit more often,” he said.
“Getting ‘Back to Starbucks’ is our plan, and we’ll share our progress as we go.”
It has not been confirmed when the company plans to implement these changes or how they will be introduced.
Niccol, who previously ran the Mexican food chain Chipotle, was brought in to Starbucks to help turn the company around.
Its preliminary results showed that global store sales were down 7% between July and September.
The downturn was more prominent in China, where sales fell 14% over the same period.
High prices for drinks and long queues at busy times have been blamed for the tumbling sales.
What is on the Starbucks menu this autumn?
Starbucks updates its menu every season and this autumn is no exception. The autumn menu includes:
- Pumpkin Spice Latte – £6.15
- Iced Pumpkin Spice Latte – £6.20
- Pumpkin Spice Frappuccino – £5.05
- Pumpkin Spice Creme Frappucino – £5.05
- Pumpkin Cream Iced Chai Latte – £5.65
- Pumpkin Cream Iced Oat Shaken Espresso – £6.25
- Pumpkin Cream Cold Brew – £5.65
- Pumpkin Marble Loaf Cake – £3.90
- Toffee Apple Muffin – £3.75
- Mummy Cake Pop – £3.20
- Pumpkin Chocolate Brownie – £3.50
- Maple & Pecan Swirl – £4.25
The coffee chain’s seasonal coffees and Frappuccinos can cost more than £6 for the largest size.
Last week Starbucks announced that it is scaling back its promotional offers through its mobile app to get customers to pay full price for its coffees and teas.
The move is part of a strategy to reposition Starbucks as a premium brand.
It will also reduce pressure on employees, who can get flooded with orders when promotions are on.
In September the company offered extra loyalty points on Tuesdays and had deals on several drinks purchases on Saturdays.
This moved away from promotions which lasted many months such as “buy one, get one free” and 50% off.
Starbucks is not planning to introduce offers during the festive season and will instead promote its seasonal drinks with advertisements, according to the Wall Street Journal.
Starbucks has previously avoided coffee promotion but it dialled them up earlier this year to lure back customers.
This strategy has now been put in reverse by Niccol since he took over last month.
Starbucks shares fell 4% on Tuesday and it suspended its financial forecasts for the next year due to the “current state of the business”.
The company’s full results are still scheduled for release on October 30.
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