In an effort to reconnect with its customers and reverse a troubling sales slump, Starbucks is making a dramatic pivot away from automation and back toward the human touch that once defined its brand. With a new CEO at the helm, the coffee giant is focusing on more baristas, warmer service, and a simpler, more personal café experience.
A Leadership Shift with Big Promises
When Brian Niccol stepped in as Starbucks’ CEO in September 2024, expectations were sky-high. Known for his successful stint at Chipotle, Niccol arrived with a mission to breathe life into a brand that had lost some of its sparkle. His plan: bring Starbucks back to basics by emphasizing human connection, real hospitality, and in-store quality.
Speaking during a recent earnings call, Niccol acknowledged that past efforts to streamline operations by reducing labor and increasing automation had backfired.
“Over the last couple of years, we thought machines could pick up the slack,” he said. “But we’ve learned that equipment can’t replace the warmth, attentiveness, and experience our partners provide. Our stores need people—not just tech—to thrive.”
More Baristas, Fewer Gadgets
One of Niccol’s first major actions as CEO was to start reversing the trend of labor reduction across Starbucks locations. Under his leadership, a staffing pilot program launched shortly before his arrival was rapidly expanded to 3,000 stores across the chain’s global footprint. These newly staffed stores are already seeing improvements in customer satisfaction, thanks to shorter wait times and more personalized service.
Niccol also announced that the company would be slowing the rollout of the Siren Craft System, a suite of automation tools designed to make drink preparation faster. While the system was introduced with the goal of boosting productivity, it lacked the warmth and flexibility that human baristas bring.
“Technology should support great service, not replace it,” Niccol said. “We’re finding that real people make a real difference.”
Bringing the Café Vibe Back
Beyond staffing, Starbucks is making a conscious effort to revive the cozy, welcoming atmosphere that once set its cafés apart. The company is reintroducing thoughtful touches like handwritten notes on cups, ceramic mugs for customers who choose to dine in, and more comfortable seating—all aimed at encouraging guests to stay a little longer and enjoy their experience.
Niccol noted that these changes aren’t just cosmetic. “It turns out the small things matter. They tell customers they’re welcome here, and they’re making people want to come back,” he said.
In the UK, Starbucks is also piloting fresh baking and food assembly in stores to offer more appealing, freshly prepared menu options. The goal is to cater to local tastes and make the food offerings feel more artisanal and less mass-produced.
Simplifying the Menu and Addressing High Prices
Another part of Niccol’s plan involves untangling the company’s increasingly complicated menu. With dozens of drinks, limited-time offers, and seasonal specialties, customers have found the ordering experience overwhelming—and, in many cases, unaffordable. Some beverages now top £6, making Starbucks a luxury rather than a daily indulgence.
Niccol says a pricing and menu overhaul is underway. “We’re listening to feedback. People want simplicity and value, and we’re working to deliver that without compromising quality.”
Streamlining the menu could also help reduce wait times and boost efficiency without relying so heavily on automation.
Financial Results Show There’s Work to Do
Despite these efforts, Starbucks’ latest financial report indicates there’s still a long road ahead. The company posted a 1% decline in global sales for the first quarter of the year—marking its fifth straight quarter of falling revenue. These results fell short of analysts’ expectations and underscored continued softness in Starbucks’ largest market: the United States.
Niccol called the results “disappointing,” but pointed to positive developments in other key regions, including China and Canada, where sales were up.
“This is a reset,” he said. “We’re doing the hard work now to create long-term success. We’re seeing encouraging signs—it’s just going to take time.”
A Bold (and Expensive) Bet on New Leadership
Niccol’s hiring wasn’t just high-profile—it was one of the most costly CEO appointments in recent U.S. corporate history. His compensation package, which could reach up to $113 million, reflects the board’s confidence that he can steer Starbucks back to growth. That faith comes with pressure: Niccol is the fourth person to lead Starbucks in under three years, and stakeholders are watching closely.
So far, his human-centric approach has been well received by employees and many customers. Whether that goodwill can translate into stronger financial performance remains to be seen.
A Return to What Matters
At its heart, Starbucks’ new strategy is about returning to the values that built the brand in the first place: hospitality, connection, and quality. Niccol is betting that scaling back the machines and bringing back the people will help Starbucks stand out again in a crowded, cost-conscious market.
“It’s not just about coffee,” he said. “It’s about the experience. When you walk into a Starbucks, we want it to feel like a place where you belong.”
As the company works to recover lost ground, one thing is clear: Starbucks is choosing people over profit margins—at least for now.
