Starbucks is going retro to make customers feel welcome again

By Nathaniel Meyersohn, CNN

New York (CNN) — Starbucks is bringing back hand-written names in Sharpie on cups and self-serve stations with sugar and cream to try to win back customers.

Baristas handwriting customers’ names and messages on their drink orders in marker will make a comeback, new Starbucks CEO Brian Niccol said Wednesday on a quarterly earnings call. It’s part of his strategy to recreate a coffeehouse vibe at Starbucks and add a “human touch.”

“The number I heard was something like close to 200,000 Sharpies we’ve got to track down,” Niccol said in an interview with CNBC Wednesday. “Unfortunately, it’s not as simple as just going to the Staples and picking up some Sharpies.”

Starbucks plans to bring back self-serve condiment stations in stores, too. The company removed them during the beginning of the pandemic in 2020.

“Our customers are asking for it, and our baristas are saying it would help them” speed up orders, Niccol said on the call.

It’s part of a slew of changes Starbucks is making under Niccol, who took over the struggling company in September.

Starbucks on Wednesday reported a third straight quarter of slumping sales and declining customer visits.

Starbucks’ global sales at stores open at least a year dropped 7% last quarter, and the number of customer transactions fell by 8%.

“Our financial results were very disappointing,” Niccol said. “It is clear we need to fundamentally change our strategy to win back customers and return to growth.”

No charge for oat milk

Starbucks drinks with soy, oat, almond or coconut milk won’t cost customers extra anymore.

Starting next week, Starbucks customers will no longer pay more for adding non-dairy milk to their orders. The company said the removal of the non-dairy milk surcharge means customers who request it will pay around 10% less than they did previously.

Orders with milk substitutions have proliferated at Starbucks in recent years, alongside non-dairy alternatives in grocery stores. In 2021, Starbucks added oat milk to its menu. Non-dairy milk has become the second most common order modification at Starbucks, behind adding a shot of espresso.

Starbucks is also scaling back promotional offers through its mobile app to get customers to pay full price for its coffees and teas. Niccol is aiming to reposition Starbucks as a premium brand that stays away from discounts.

Although it’s paring back discounts, Niccol said the company did not plan to raise prices next year. Starbucks has hiked prices in recent years, leading some customers to turn away from the chain.

Starbucks also said this week that it’s eliminating its controversial olive oil-infused drinks from the menu less than a year after they launched.

The lineup of “Oleato” drinks will be eliminated from Starbucks’ menus in the US and Canada beginning in early November, part of Niccol’s plans to reduce a menu that he recently called “overly complex.”

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