Starbucks menu is set for a major shakeup with the coffee chain's new boss saying its menu needed to "fundamentally change".
Brian Niccol took on the role of Starbucks' chief executive in September of this year and has announced that he wants to look into the chain's "overly complex" menu and review its pricing after a major sales decline. The strategy is a bid to win back its customers who had "drifted" away from the high street chain and were visiting less often.
Niccol, who previously headed the Mexican food chain Chipotle, was brought into Starbucks to help turn the business around. His update comes after global sales at the chain tumbled by 7% between July and September. The downturn was more dramatic in China, where sales fell 14% for the same period.
In an internal video to the company, the company boss said: "To welcome all our customers back and return to growth, we need to fundamentally change our recent strategy. "To improve its slowing sales, Niccol pledged to "get back to Starbucks".
The prices of Starbucks drinks have been blamed for the company's decline in sales as customers worldwide have been forced to tighten their belts. The chain's blended coffees and Frappuccinos can cost more than £6 for a large size. The company boss said this was an area that he wanted to look into, saying: "We will simplify our overly complex menu, fix our pricing architecture, and ensure that every customer feels Starbucks is worth it every single time they visit."
Alongside this, Niccol admitted that there were issues in its stores such as not enough staff and customer bottlenecks, adding: "He added: "We need to refine mobile order and pay so it doesn’t overwhelm the café experience."
Last week, it was confirmed that Starbucks would scale back its promotional offers through its mobile app in the US. The move was part of the new CEO's strategy of repositioning Starbucks as a "premium brand" while also reducing the strain on employees, who get flooded with work when promotions are high.
Starbucks has previously offered extra loyalty points and deals on drink purchases. Earlier this year, the chain gave customers offers including 50% off drinks and "buy one, get one free”. In the past, Starbucks had mostly avoided coffee promotions but ramped them up earlier this year to lure back customers.
The Wall Street Journal reported that Starbucks is also not planning to run broad offers during the holiday and festive season and instead aims to promote seasonal drinks through advertising. Starbucks is due to release its full results next week. Its shares dropped 4% on Tuesday as it suspended its financial forecasts for the next year due to the "current state of the business."