Starbucks CEO demands growth: Corporate staff must own effectiveness

Starbucks is pushing for a turnaround. And the CEO, Brian Niccol, is making it clear: corporate employees need to own their impact.

Fresh off laying off 1,100 corporate workers, Niccol addressed the remaining team in Seattle. His message? Growth depends on them.

Ouch. But what exactly does that mean?

Fixing the Little Things (and the Big Ones)

Niccol wants faster action on customer complaints. Think wobbly tables, dead outlets, and overflowing drink pick-up areas.

His take? Too many follow-up meetings are bogging things down. The result? A lack of clear accountability.

He put it bluntly: “We’re not effective in making decisions and then holding each other accountable to those decisions. ”

Optimism and Changes

It’s not all doom and gloom. Niccol says he’s optimistic. And there are changes happening in U. S. stores.

Like what?

• Real ceramic mugs for dine-in customers.
• Limits on mobile order quantities.

Office Time?

But Niccol also hinted at a need for more in-office presence. He himself commutes from California to Seattle three days a week. That commute costs Starbucks a cool $250,000 annually.

Currently, about 40% of corporate staff are remote. Starbucks does have a hybrid policy for about 3,500 employees.

The “Back to Starbucks” Plan

Starbucks has seen a dip in sales at stores open for at least a year. Four straight quarters, in fact. Niccol launched the “Back to Starbucks” plan.

The goal? To boost performance.

What’s in the plan?

• Cutting the menu by 30%.
• Speeding up coffee making (under four minutes! ).
• Writing names on cups (with Sharpies, of course).

Niccol claims customers are responding well. He believes this plan is the “fundamental change in strategy” needed to restore the brand and drive long-term growth.

Starbucks has a massive global footprint. Over 40,000 stores worldwide. Almost 17,000 in the U. S. alone.

The pressure is on. Can corporate deliver?