Starbucks says it’s making the menu simpler. But it won’t say what’s getting nixed
In This Story
Starbucks (SBUX+1.25%) says a key part of its turnaround strategy under new CEO Brian Niccol is to make its notoriously sprawling menu simpler by making it smaller.
“To enhance throughput, quality, and consistency, we’re simplifying our complex menu to align with our identity as a coffee company,” Niccol said Wednesday during the company’s earnings call. “We’ll maintain customer choice but focus on fewer, better offerings.”
But the coffee giant is being cagey about what’s actually being cut.
Starbucks has said it will ditch its olive-oil infused Oleato drinks starting Nov. 7. But it won’t say what other items might be axed. In multiple conversations with a Starbucks spokesperson this week, the company wouldn’t confirm or deny any other menu items poised for elimination.
The decision to ditch Oleato, which was introduced with great fanfare only to trigger customer complaints, fits neatly into Niccol’s plans for a turnaround after three quarters of declining sales. Niccol, a former Chipotle CEO who took the helm as Starbucks chief in September, says paring down the menu is partly meant to ease the burden on baristas and speed up service.
“As a standard course of business, we regularly update our menu,” a Starbucks spokesperson told Quartz this week. “Beginning early November, we will no longer offer Oleato beverages. While this decision was made prior to Brain taking the role of CEO, the decision to remove the beverages aligns with strategy to simplify our menu.”
Starbucks also said this week that it will stop charging extra for non-dairy milk substitutes. Starbucks has said it will keep menu prices stable through fiscal 2025.
The company is shifting its marketing focus back to coffee quality and preparing for a redesign of its stores, along with increasing staffing and simplifying mobile ordering. It remains to be seen how that will pan out in the long-term. Niccol, who led successful turnarounds at Chipotle (CMG+5.06%) and Taco Bell (YUM+0.97%), plans to get Starbucks back to its roots — at least in the U.S.
