Starbucks' increasingly complicated menu is a thing of the past, CEO Brian Niccol told investors during a Tuesday earnings call.
Niccol said the international coffee chain plans to cut 30% of its food and drink offerings by the end of its fiscal year — which for the company is in September — as part of his effort to streamline service at Starbucks stores.
"We've been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics," Niccol said. "As part of this work, we made some late simplifications to our holiday product line-up and believe we have more opportunity ahead as we follow a discipline stage-gate process to innovate and bring to market, fewer, better beverage and food offerings that reflect our premium positioning."
The Starbucks corporate office will continue to work with its in-store partners for inspiration on new product lines based on changing consumer preferences like it did with its lavender drinks last year, Niccol said, as well as release new cultural offerings like its current Dubai matcha drink.
A representative for Starbucks declined to answer specific questions about the planned menu simplification — such as which menu items will be targeted or when the cuts will be made — when reached by Business Insider.
The new CEO, who took the job in September 2024, has rolled out several "back to Starbucks" initiatives in an attempt to fix slumping sales at the coffee giant and improve the chain's reputation, which in recent years has been marred by inconsistent drink preparations and long wait times. One longtime barista previously told Business Insider the chain has become a "soulless fast-food empire" rather than the quirky local coffee shop it started as.
Niccol's strategy — which includes rolling back surcharges for non-dairy creamers, bringing back handwritten notes on your coffee cup, and installing new, more comfortable decor — has earned the approval of Starbucks' former CEO, Howard Schultz, who last year said he has total faith in Niccol's back-to-basics plan.
It also appears to be resonating with customers and shareholders, as the company's first-quarter earnings beat expectations, despite a decline in sales, and shares are up more than 10% in the last month.
