• Starbucks CEO Brian Niccol says he wants to add an "aperitivo" menu — late afternoon bites.
• I decided to piece together an afternoon snack based on Starbucks' current menu. Not bad!
• Sitting with a fruity drink, a pastry, and a savory snack at 3:30 p.m.? I could get used to this.

Around 3:30 most afternoons, I go full raccoon mode in search of snacks — raiding my cupboards and fridge at home, or furtively rifling through the offerings in the office breakroom, searching for something sweet/crunchy/salty/savory/life-affirming.

Starbucks knows about raccoon mode and wants to expand its afternoon snack menu to serve those customers. CEO Brian Niccol said this week that he's looking at bringing the "aperitivo"-style menu it has in its European locations to the US. Think of the "aperitivo" as a little late afternoon or pre-dinner snacky-snack.

I say, with rabid enthusiasm (the rabies here is purely metaphorical), bring it on!

Checking out Starbucks' current snack menu

I ventured out around 3 p.m. to a local Starbucks to see what was currently on the menu that would fill that late afternoon void in my soul. What did it already have, and what was missing in terms of "aperitivo"-type snacks?

I browsed the online menus for Starbucks in a few European countries to see what we're missing in the US. There's definitely some difference in the food among countries.

The UK has a lot of sandwich options we don't have, as well as a strange breakfast sandwich that appears to be just sausages on a bun (I am told this is a classic British delicacy). France has some way better-looking pastry items, like a "pistachio pyramid," but, interestingly, has no egg-based breakfast items. Italian Starbucks locations have cannoli (nice), a wide array of doughnuts, and a grain bowl.

Most intriguing to me: Spain has a bagel or multigrain toast you can order with oil, tomato, and salt. Frankly, that sounds amazing.

But browsing these menus, I wasn't clear on what the "aperitivos" were. The stuff that Niccols might want to bring to America to serve during the 2 p.m. to 5 p.m. hour. What is it about some of these items that makes them more appropriate for a late-day snack instead of a morning one?

My afternoon at Starbucks — with snacks!

So when I got to my local Starbucks, I tried to find what might be considered a proper late afternoon snack based on the current menu. The shop was packed with kids from the nearby middle school that just let out, getting colorful iced drinks.

I ordered a new drink from Starbucks' "spring selections menu" — a Blackberry Sage Lemonade Refresher. Gotta say, that was fantastic.

To sample some more of the afternoon fare, I asked for a brownie (sold out) and then the vanilla bean custard danish (also sold out). I asked the barista what the most popular afternoon treat was, and she said the chocolate chip cookie. I've had one of those already, so I got the baked apple croissant to try something new. It was great.

I was particularly hungry, so I ordered the turkey pesto sandwich, which I've also had before. After the other items, which were quite good, the sandwich was kind of a dud. I didn't finish it.

The thing I think most fits the bill for an afternoon snack was the new spicy falafel pocket, which is a small wrap with falafel mush inside. It was too small to be a full lunch or meal, but perfectly snack-sized. It scratched the itch for a savory snack that isn't packaged like chips.

Niccol, who led turnarounds at Pizza Hut, Taco Bell, and Chipotle, has expressed his desire to get Starbucks back to its roots as a place people want to hang out and relax — not just a place to pick up a to-go order (or to use the bathroom).

Making Starbucks cool again

As a teen in the late 90s, I remember the days when Starbucks used to be a hangout. One of my first summer jobs was working at a Starbucks in Massachusetts. Even then, I was aware that it had a vibe problem: Its image in the popular consciousness at that time was as a pretentious chain that muscled out mom-and-pop coffee shops and forced customers to use ridiculous names for its sizes, like grande and venti.

The fast-food-ification of Starbucks in more recent years has helped it shed the image of a place that served oversized lattes to mean bosses — but it came at a price.

Starbucks is going through a bit of a rough patch. Sales fell 2% in the US last quarter. The new CEO has big plans to turn things around, including having baristas handwrite messages on cups, and possibly this new late-afternoon menu.

As I sat inside my local Starbucks, sipping my drink and eating a late-afternoon snack, it was really entirely pleasant. It was a sunny spring day, I was away from my computer. I typically don't linger in Starbucks often, but this … this was nice.

Did I aperitivo? Was I living a Continental lifestyle? Perhaps!

• Starbucks is planning to use zero-based budgeting starting during its next fiscal year.
• The coffee chain is trying to cut expenses to pay for its turnaround efforts.
• Other companies have used zero-based budgeting, though some appear to have cut perks too deeply.

Starbucks is planning to use a cost-cutting method with a tough reputation as it continues its turnaround.

The method, called zero-based budgeting, asks managers to justify every dollar they spend each year instead of using the previous year's spending as a baseline, as many companies do.

Starbucks executives say ZBB will help them find savings as they spend more on their Back to Starbucks plan, including paying for more hours for the baristas who staff its stores.

"We're going to be looking at ways to grow the business and also take a really hard look through the zero-based budgeting approach to understand where else there might be some offsets," CEO Brian Niccol said during the company's earnings call on Tuesday.

"I love deploying a few tools like zero-based budgeting" to "help us get after some of those maybe-stranded costs," CFO Cathy Smith, who joined Starbucks in the last few weeks, also said on the call.

A Starbucks spokesperson did not respond to questions about how the company planned to use zero-based budgeting.

ZBB gained popularity in the 1970s, thanks in part to former president Jimmy Carter, who advocated — ultimately unsuccessfully — for its use by the federal government.

More recently, some major brands have adopted the strategy.

For instance, the private equity firm 3G Capital has deployed the method at the Stella Artois maker AB InBev and Kraft Heinz, the company that makes Oscar Mayer and Lunchables.

The strategy, which includes moves like making all senior execs fly coach class even over long distances, did lower costs and improve the companies' margins. But in some cases, the spending cuts were so severe that it made it tough for employees to do their jobs, Business Insider reported in 2021.

One employee, who had recently left Kraft Heinz, told BI at the time that she could only spend $5 annually on office supplies. She also had to bring in her own Keurig pods from home since the company, which makes Maxwell House coffee, provided no coffee in the office break room.

Other Kraft Heinz employees told BI that strict spending controls hampered the development of new products and ultimately made it less competitive.

Some companies have adopted the method at key turning points.

Managers at X, formerly known as Twitter, reportedly had to use zero-based budgeting after Elon Musk bought the company in 2022.

And in 2020, General Motors implemented ZBB to manage disruptions caused by the pandemic. The company temporarily cut spending by slashing advertising and furloughing some employees, then-CFO Dhivya Suryadevara said at an investor conference.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected]

• Brian Niccol is overseeing major changes as Starbucks CEO.
• Niccol earned a reputation as a turnaround expert after stints at Chipotle and Taco Bell.
• Here's how he became one of the biggest names in the restaurant industry.

Brian Niccol is making some big changes at Starbucks. It's hardly his first time attempting a turnaround at a fast-food chain.

Niccol has two decades of experience in the restaurant industry, from Pizza Hut to Chipotle. He's honed a specialty in that time as someone who can take a struggling chain and make it successful.

Here's how Niccol became one of the most notable leaders in the restaurant industry.

Niccol got his start at Procter & Gamble

After graduating from Miami University in Ohio in 1996, Niccol took a job at consumer products manufacturer Procter & Gamble.

One of his early successes was a marketing campaign for Scope mouthwash that allowed customers to send animated kisses to each other through email platform Hotmail, Niccol told the Los Angeles Times in 2015.

While mouthwash itself wasn't new or innovative, Niccol said the campaign used a then-new technology to keep the brand relevant. "What I've always seen is the brands that have a youthful mindset, a youthful vigor, they have a great value proposition," he told the Times.

While working at Procter & Gamble, Niccol earned an MBA from the University of Chicago.

Niccol's first restaurant role was at Taco Bell's parent

Niccol joined Yum! Brands, the company that owns KFC, Pizza Hut, and Taco Bell, in 2005. His first roles were at Pizza Hut. In 2011, he became CEO at Taco Bell.

Under Niccol, Taco Bell pushed back on perceptions of its food quality. In 2011, a lawsuit alleged that Taco Bell's beef used too many fillers. The lawsuit was dismissed, but the impact weighed down Taco Bell's results in the quarters afterward, executives said at the time.

Niccol oversaw a various changes, from the chain's new "Live Más" slogan to a new breakfast menu. Taco Bell also launched the Doritos Locos Taco, which uses a shell coated in the chip's flavored coating, and started serving boozy Baja Blasts and other alcohol at Taco Bell Cantina locations.

The changes rejuvenated sales. By the time Niccol moved on to this next job in 2018, one analyst called his tenure as CEO a "brand revitalization" for Taco Bell.

Niccol oversaw a successful turnaround at Chipotle

In late 2017, Niccol learned that Chipotle founder and CEO Steve Ells planned to step down as soon as the Mexican grill chain could find his replacement.

"When I saw the news, I thought, 'That's interesting,'" Niccol told the Harvard Business Review in 2021. In early 2018, he became Chipotle's new CEO and a director.

At the time, the Mexican grill chain was struggling. A few years earlier, Chipotle faced a months-long E. coli outbreak at its restaurants that ultimately sickened over 1,000 people. Like the lawsuit over Taco Bell's meat, the fallout was hurting the brand's sales for longer than executives had expected.

Chipotle made some big changes once Niccol became CEO. He moved the company's headquarters to Orange County, California, from Colorado. Chipotle also beefed up food safety procedures and training for employees, steps Niccol touted in early 2020 as COVID-19 spread around the world and customers became more conscious of their health.

And in a few years, Chipotle went from having almost no digital presence to adding dedicated drive-thru lanes, called "Chipotlanes," for picking up online orders at thousands of stores.

The changes worked. Chipotle's stock was trading around $6 a share when Niccol took over as CEO in March 2018. By the time he left for Starbucks last year, shares of Chipotle stood around $56 each.

Niccol's work at Chipotle helped solidify his status as an executive who could improve restaurants' financial performance.

"They might've been struggling at the time, but boy, at the core, I just believed there was a reason why they should succeed," Niccol said at the time.

Even Niccol's current Starbucks biography mentions his time at Chipotle.

"He more than doubled the business by establishing Chipotle as a culinary leader, pioneering digital innovation, introducing exciting new menu offerings, and expanding internationally," the biography reads.

Niccol faces his biggest test yet at Starbucks

Niccol joined the coffee chain as CEO in September.

Even before he started, industry analysts said that Niccol's accomplishments at Chipotle and Yum! were strong credentials to tackle Starbucks' challenges, including slumping quarterly sales and operational challenges such as long wait times.

Still, Starbucks is larger and more complex than Chipotle, some analysts pointed out. Chipotle had about 3,700 locations in its mostly US-based store network at the end of 2024. Starbucks, meanwhile, had about 40,000 stores as of September, according to its latest annual filing with the SEC. Just over half of those were outside North America.

While he's just six months into the job, Niccol has already overseen a lot of changes at Starbucks.

The coffee chain laid off about 1,100 corporate employees last month, a move that Niccol said would allow Starbucks to "operate more efficiently, increase accountability, reduce complexity and drive better integration."

Many Starbucks customers have also noticed changes at their local stores, from the return of self-service bars for milk and sugar to the requirement that patrons make a purchase to hang out there.

Changes to Starbucks' mobile ordering system, including timed pick-up slots, could also be coming, Niccol has said.

The goal is to win customers back and restore Starbucks' traditional role as a "third place" to spend time besides work and home, Niccol has said.

"Our stores will be inviting places to linger, with comfortable seating, thoughtful design, and a clear distinction between 'to-go' and 'for-here' service," he wrote in his first public message as CEO in September.

Do you work at Starbucks and have a story idea to share? Reach out to this reporter at [email protected].

• Starbucks cafés may soon have more power outlets.
• Brian Niccol, Starbucks' CEO, said the company was testing a store redesign with more seats and power outlets.
• This is the latest move in his "Back to Starbucks" plan to make the chain more warm and inviting.

You won't have to worry about your laptop running out of juice at Starbucks anymore if Brian Niccol, the company's CEO, has anything to say about it.

Niccol's latest move to get coffee drinkers to linger at the chain's cafes involves introducing more power outlets in stores.

The chain is testing a café redesign in the US, with the aim of making it a more comfortable and inviting place to hang out, the CEO said in a shareholder meeting on Wednesday.

"Imagine coffee houses that are comfortable and warm with expanded seating options, power outlets, and abundant food displays," Niccol told shareholders.

Niccol said the new design would also have clearly separated sections for those dining in-store and those picking up their to-go orders.

A Starbucks representative told BI earlier in March that it would add more seating to its cafés and start introducing shelves and risers to separate the café and mobile ordering sections.

This is the latest move in Niccol's "Back to Starbucks" plan, a game plan he developed when he joined Starbucks in September to turn the company around. Wednesday's shareholder meeting marked six months since he took the top job.

The executive has been working to solve challenges including long wait times, flaws in the customer experience, and issues with its mobile ordering system. Niccol said that mobile ordering "chipped away" at the brand's soul.

Starbucks' global comparable sales slid by 7% in the fourth quarter of 2024 compared to the same period a year before. Its performance improved in the first quarter of 2025, when global comparable sales decreased by 4% year-on-year.

A key pillar of Niccol's "Back to Starbucks" is rebranding the company as a cozy local coffeehouse where people can hang out.

His changes include introducing ceramic mugs for hot drinks in store, handwritten messages for customers, and self-serve condiment bars.

• Starbucks CEO Brian Niccol is trying to turn the brand around.
• Challenges include fixing long wait times and issues with the mobile ordering system.
• Retail and marketing experts say his moves are a step in the right direction.

When Brian Niccol stepped into the top job at Starbucks in September, he had a game plan to turn things around.

"We're refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas," Niccol wrote in an open letter at the time. He dubbed it the "Back to Starbucks" plan.

The brand was facing various challenges, including long wait times, flaws in the customer experience, and issues with its mobile ordering system. As Niccol saw it, mobile ordering had chipped away at the brand's soul.

Starbucks' global comparable sales slid by 7% in the fourth quarter of 2024 compared to the same period a year before. Its performance was slightly better in the first quarter of 2025, when global comparable sales decreased by 4% year-on-year.

"It was trying to command a premium price for an experience that had rapidly deteriorated to being sub-premium, and hence, customers fled," Dipanjan Chatterjee, a vice president at the New York-based market research company Forrester, told Business Insider.

Six months into the job, retail and marketing experts say Niccol is getting a lot right.

Jeffrey Towson, the founder of the US and China-based retail consultancy TechMoat Consulting, said Niccol is "revamping the entire customer journey," which is the "right strategy."

He said Starbucks already has one big advantage — its retail footprint — but now, it needs to "revitalize the customer experience and its reputation."

"Real estate trumps brand in retail coffee. Nobody walks an extra two blocks to go to a Tim Horton's versus a Starbucks. They go to the closest one," he said.

Niccol's turnaround plan

Niccol is trying to rebrand Starbucks as a cozy local coffeehouse where people can hang out.

He has brought back ceramic mugs in store for hot drinks, which he said would improve the café experience, and re-introduced self-serve condiment bars.

He's asking baristas to personalize the experience by writing notes to their customers on the cups. Customers are being given refills of brewed coffee.

To reduce customer wait times, Niccol has eliminated 30% of its menu offerings and introduced a new mobile ordering system. His goal is to cut wait times to four minutes or less.

Chatterjee told BI that due to its size, Starbucks will likely not be able to get to a point where every store feels unique and local. But it's making the right move by trying to adopt elements from small coffee shops, Chatterjee said.

"Lifting elements of the coffee house experience and weaving them into the Starbucks journey, like the ceramic mugs and the doodling, does enough to reduce the sterility of a chain store," he said.

Niccol has also made staffing changes. On Monday, the company announced it would be laying off 1,100 employees. In an open letter, Niccol wrote that Starbucks is "simplifying our structure, removing layers and duplication and creating smaller, more nimble teams."

A Starbucks representative told BI that the brand is testing changes to its staffing, processes, and new mobile ordering algorithm to improve its wait times.

The representative added that the chain would add more seating to its cafés to improve the in-store experience and start introducing shelves and risers to separate the café and mobile ordering sections.

Execution, consistency, and training

Hal Hershfield, a professor of marketing, behavioral decision-making, and psychology at UCLA, said the success of Niccol's plan will hinge on how well it's executed.

"It has to be more than just a marketing gimmick, and something that gets executed at a deeper level," he said.

Starbucks' attempts to emulate the feel of a neighborhood coffeehouse will work "only if it can actually foster more of a sense of belonging," Hershfield added.

Mário Braz de Matos, the cofounder of the Singapore-based branding consultancy agency Flying Fish Lab, said Niccol's changes would require "consistent execution across Starbucks' vast network of stores in the US," so employee training will be critical.

Starbucks faces broader challenges, like competition from local coffee chains and evolving consumer preferences, which may limit its ability to attract new customers, he said.

In global markets like China, Starbucks faces "stiff competition" from competitors like Luckin Coffee, he said.

"Additionally, the brand's ubiquity in markets like the US means it has fewer untapped customer segments to target," he added.

The remaking of the Starbucks brand will take time, Chatterjee said — and as the brand works to build up more of a café vibe, it can't afford to lose the speed and efficiency that some customers desire.

"Sometimes, you want to linger and soak in the atmosphere, and other times, you need to grab and go," he said. "Starbucks needs to win both those occasions."

• Starbucks is retiring 13 of its less popular and more complicated drinks.
• This includes several of its famous Frappuccinos.
• Good riddance, I say!

First, let me say: If the Chocolate Cookie Crumble Crème Frappuccino was your favorite drink, I'm sorry. Accept my condolences that it's among the 13 beverages to be deaccessioned from Starbucks' menu —  never to crumble or frapp again.

I know the retirement of your favorite obscure-flavored, mass-market food or beverages can be painful. I still mourn Diet Vanilla Coke in a 20-ounce bottle. (2002-2005, RIP.)

But with a clear head, anyone can see that the list of drinks that Starbucks' new CEO is axing makes sense. Quite simply, things had gotten out of hand.

Here are the drinks headed off to sweet treat Valhalla:

1. Iced Matcha Lemonade
2. Espresso Frappuccino
3. Caffè Vanilla Frappuccino
4. White Chocolate Mocha Frappuccino
5. Java Chip Frappuccino
6. Chai Crème Frappuccino
7. Caramel Ribbon Crunch Crème Frappuccino
8. Double Chocolaty Chip Crème Frappuccino
9. Chocolate Cookie Crumble Crème Frappuccino
10. White Chocolate Crème Frappuccino
11. White Hot Chocolate
12. Royal English Breakfast Latte
13. Honey Almondmilk Flat White

Look, I'm sure the Caramel Ribbon Crunch Crème Frappuccino hits a certain sweet tooth. By no means am I yucking anyone's yum — but goodness gravy, these drinks are ridiculous.

Most of these drinks are probably higher in sugar and calories than people expect. (A 16-ounce Caramel Ribbon Crunch Crème Frappuccino has 420 calories and 22 grams of fat — or nearly 30% of your daily fat guideline.) I'm not proposing Starbucks shouldn't offer dessert-ish drinks, but I can understand why Starbucks doesn't want its drinks to be synonymous with unhealthy indulgences.

To be clear: No one, certainly not my primary-care physician, would ever accuse me of being a healthy eater — and I love a novelty sweet treat. I am not joking or saying this for effect, but I literally was ambiently snacking on a few of the new Post Malone novelty Oreos while writing this.

Starbucks menu cuts are supposed to improve service

A representative for Starbucks told Business Insider that the move to cut these whimsical sugar bombs will help make the rest of the service at Starbucks better. In an email to my colleague, Starbucks said it will "make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company."

I worked at Starbucks in the late 1990s, at the dawn of the Frappuccino era, and I can tell you from experience that making these drinks was slow, labor-intensive, and unpleasant. I'm sure that the methods have gotten more efficient in the last 20 years, but I'd wager that these are still some of the most annoying drinks to make — they take extra time and require the baristas to learn obscure ingredients and ratios, which can lead to more errors in drinks.

Starbucks' new CEO, Brian Niccol, has said that he wants the chain to get back to its origins as a place people want to hang out — and shift away from the mobile app ordering that exploded during the pandemic. Part of the rise of mobile ordering is that it allowed — even encouraged — people to add extra syrup pumps and toppings for increasingly elaborate customized drinks that would go viral on TikTok.

The drinks got wackier and wackier, and it's time to rein it back in.

A Frappuccino is a wonderful invention, and the addition of the Mocha Frappuccino was inspired and brilliant. But when we're getting down to the difference between the Double Chocolaty Chip Crème Frappuccino and a Chocolate Cookie Crumble Crème Frappuccino? Get real.

These nonsense drinks have been mercifully taken out behind the dumpster and murdered. And it's the right call. Bravo, Starbucks.

• Brian Niccol, Starbucks' CEO, said the company is considering a large expansion in the Middle East and China.
• The brand will open 500 new outlets in the Middle East in the next five years, he said.
• Starbucks' sales in the Middle East have taken a hit due to boycotts over the war in Gaza.

Brian Niccol, Starbucks' CEO, said the coffee chain is eyeing a major expansion into the Middle East and Chinese markets.

In a Friday interview with Bloomberg, Niccol said that the chain's franchise operator in the Middle East, the Alshaya Group, will open 500 new stores in the region over the next five years. He said the opening of the new stores is projected to create 5,000 new jobs.

Niccol also talked about a large-scale expansion in China. He said the company is focused on how to get bigger in China "because the reality is, that market is going to continue to grow for us."

"Today, we have over 7,000 stores. There will be many more thousands of stores in China in our future," he added.

Niccol's comments about building Starbucks' presence in these two markets come after the brand saw losses in the Middle East last year, where it faced boycotts linked to the war in Gaza.

Starbucks' finance chief said in an earnings call in April that comparable store sales outside the US fell 6% in the second quarter of 2024, largely because its Middle East business had taken a hit. Starbucks said on its website in 2023 that it had nearly 2,000 stores operated by the Alshaya Group in the Middle East and North Africa region.

"The boycott and that whole information cycle, it's really unfortunate," Niccol told Bloomberg.

"Because obviously, it hurts the brand, it hurts our partners in the stores, and the thing that's really disappointing about it is, it's just not based on anything that's accurate or true, you know, we've never supported any militaries," Niccol said.

The chain also faces an uphill battle in China.

The market has been flooded with offerings from budget local coffee chains like Luckin Coffee, Cotti Coffee, and KFC's coffee wing, KCOFFEE. These chains are now competing with Starbucks for buy-in from China's cost-conscious consumers.

Comparable store sales in Starbucks China decreased by 6% in the latest quarter, which ended on December 29.

Niccol's vision for Starbucks

Niccol, who took the top job at Starbucks in September, has been making big changes at the company.

In October, he said he aimed to rebrand Starbucks as an inviting place for people to hang out.

Niccol said on the company's January 28 earnings call that Starbucks would simplify its offerings. It would also work to reduce wait times by improving its mobile ordering process and testing a new algorithm for mobile orders.

On the earnings call, Niccol and Starbucks' finance chief said the chain would cut 30% of its menu items to streamline service.

Representatives for Starbucks didn't respond to a request for comment from Business Insider, sent outside regular business hours.

• Starbucks CEO Brian Niccol said mobile ordering "chipped away" at the brand's soul.
• In a Rapid Response interview, he said mobile ordering caused the brand to lose touch with its customers.
• Since he took on the top job in September, he has worked to make stores more inviting.

Brian Niccol, Starbucks' CEO, said that mobile ordering "chipped away" at the brand's soul.

In a Tuesday podcast interview with Rapid Response's Bob Safian, Niccol said, "I think one of the things that veered Starbucks a little bit off was the whole mobile ordering, the COVID situation."

Niccol added that he thought mobile orders affected the "connection" Starbucks has with customers because staff just used labels, and "stopped writing on the cups."

He said that the company also focused on how to "remove seconds from the proposition" instead of maintaining the "experience and the connection" for customers.

He said that, at the moment, Starbucks outlets have no control over how many mobile orders they receive, and this puts pressure on the baristas to "just get drinks out the door" instead of connecting with customers.

Niccol added that, on average, mobile-ordered drinks sit on the counter for six to eight minutes, so the customer doesn't end up with the best product.

"It's been sitting there, and then usually what happens is you ask our barista to remake it," he said.

In an earnings call on January 28, Niccol introduced a new algorithm for mobile orders in an effort to make mobile ordering a lot smoother.

Since the CEO moved from Chipotle for the top job in September, he's tried to make Starbucks coffeeshops more inviting.

That involves changes like having more comfortable chairs in the cafés and serving customers their coffee in ceramic mugs again.

In an internal memo obtained by Business Insider on January 27, the chain directed staff to start writing messages to customers on single-use coffee cups to add a more personalized touch.

On the January 28 earnings call, Niccol and Starbucks' finance chief said the chain would also reduce the number of items on the menu and add digital menu boards to stores.

Representatives of Starbucks did not respond to a request for comment from Business Insider sent outside regular business hours.

• Starbucks CEO Brian Niccol can't get enough of the chain's ceramic mugs for in-store customers.
• He mentioned them thrice in a Tuesday earnings call, during which the chain reported a 4% sales dip.
• The reintroduced mugs are part of Niccol's efforts to make Starbucks a more inviting place.

Brian Niccol can't get enough of Starbucks' ceramic mugs.

Since the CEO moved from Chipotle for the top job in September, he's focused on making Starbucks more inviting for customers to hang out.

Niccol introduced several changes, including having more comfortable chairs in the cafés and serving customers their coffee in ceramic mugs again.

On the company's Tuesday earnings call, he brought up the mugs three times.

"We reintroduced ceramic mugs and handwritten notes on cups to better connect with customers and elevate the café experience for those who choose to stay and work," he said in his opening statements.

He then coined the term "mug hug," referring to customers enjoying their coffee in the cafés.

"They're holding on to that ceramic mug and they're enjoying their moment in the café, and there's not all this congestion surrounding the counter. So, it's just a much more pleasant, peaceful coffee experience," Niccol said.

He said that the chain has been working to clear counter space from a deluge of mobile orders.

Toward the end of the call, he said the ceramic mugs and other "for-here" tableware make the customer feel like Starbucks is a spot where they can "slow down," connect with others or take time for themselves.

It's unclear when Starbucks stopped serving in-store coffee in mugs. The company has continued to use them in some stores, including internationally. The company's annual reports last featured photos of the ceramic mugs in 2006, after which they displayed disposable cups and to-go bags.

The company did not respond to BI's request for comment.

Starbucks' cups have been a large part of its brand identity. It coined November 17 its "Red Cup Day," when customers can get reusable 16-ounce red cups with the purchase of a holiday drink.

Starbucks is working on a slew of changes

In an internal memo obtained by BI on Tuesday, the chain directed staff to start writing messages to customers on single-use coffee cups.

"Handwritten notes on our cups have proven to be a simple, yet meaningful action that fosters moments of connection with our customers," the memo read. "To build on that, we are updating our expectation for writing on cups. Starting 2/24, the expectation will shift to include a personalized note on all cups."

The company suggested employees write a simple affirmation, such as "You're amazing," or "Hello again" for regulars.

The coffee chain, which has been struggling with sliding sales in recent quarters, seems to be turning around. Comparable sales fell 4% for the quarter ended December 29, the company said on Tuesday, a smaller decline than predicted by analysts.

On the earnings call, Niccol and Starbucks' finance chief said other changes slated for this year include reducing the number of items on the menu, introducing a new algorithm for mobile orders, and adding digital menu boards.

The company's stock was flat after hours. It's up 6.7% in the last year.

• Starbucks' new CEO, Brian Niccol, made nearly $100 million in his first four months running the company.
• His total compensation between taking the gig in September and the end of 2024 was $95,801,676.
• The pay was mostly in stock awards but also included a $5 million bonus after one month on the job.

Starbucks' new CEO, Brian Niccol, made almost $100 million in his first four months at the company, a new filing shows.

Niccol's executive compensation package for 2024, valued at $95,801,676, encompasses the total pay he earned between taking the gig on September 9 and the end of the year.

While the compensation was mostly in stock awards — his base salary is $61,538, before his award of $90,291,772 worth of stocks — his pay package also included a $5 million sign-on bonus after completing his first month on the job.

The package also included $418,071 in additional compensation, which the filing indicates includes $143,567 of temporary housing expenses — as Niccol was not required to relocate from his home in Southern California to the company's headquarters in Seattle, and instead supercommutes using Starbucks' company jet.

Niccols' commute costs the company an additional $72,398 of expenses "related to his use of Starbucks aircraft for travel between his city of primary residence and Starbucks headquarters" and $19,367 "related to his other personal use of Company aircraft," the filing notes.

"Mr. Niccol's aircraft expenses represent the aggregate incremental cost incurred by the Company to operate the aircraft for such use, including fuel costs, flight crew travel expenses, in-flight catering, landing fees, communication expenses, and other trip-related variable costs, and do not include fixed costs that would be incurred regardless of whether there was any non-business use of the aircraft, such as aircraft purchase costs, pilot and crew salaries, insurance costs, and maintenance," the filing reads. "For trips that involve mixed non-business and business usage, we include the incremental cost of any non-business usage (i.e., the excess of the cost of the actual trip over the cost of a hypothetical trip without the non-business usage)."

Starbucks also footed the bill for $6,303 in COBRA insurance reimbursements, $48,671 in reimbursements in legal fees related to negotiations over the terms of his employment, and $127,765 worth of physical protection security expenses.

"Personal driver services were provided to Mr. Niccol at no incremental cost and is fulfilled by Starbucks salaried partners as part of his executive protection support," the filing reads.

• Starbucks is extending its free refills policy to non-rewards members with reusable cups.
• Customers at participating stores will be eligible for a top-up of many brewed coffee and teas.
• Starbucks is also reversing its open-door policy, limiting facilities to paying customers and staff.

Starbucks is expanding its free refills policy to all customers at participating stores as part of its new code of conduct, effective January 27.

Non-rewards members at the coffee giant will soon be able to receive refills at no extra cost as long as their beverage is prepared in a clean reusable cup or a for-here utensil. They also must order in-store and within the same visit.

The offer includes hot and iced brewed coffee and tea but excludes flavored iced tea, cold brew, nitro cold brew, iced tea lemonade, and its Refreshers.

Starbucks rewards members were previously the only ones who could get a free top-up of their order. From February 12th, loyal customers will also have to use a reusable cup or a ceramic in-house mug to be eligible for a refill.

The Seattle-headquartered coffee chain said on Monday that it would also reverse its open-door policy.

The policy was first introduced in 2018 after Starbucks faced widespread criticism over an incident in which two men having a business meeting were arrested at a Philadelphia location after they tried to use the restroom without purchasing anything.

The policy lets non-paying guests use store facilities, like bathrooms, indoor communal areas, and patios.

From January 27th, these spaces will only be reserved for staff, customers, and people accompanying those making purchases.

"Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafés or need to use the restroom during their visit," Starbucks' representative Jaci Anderson told BI in an emailed statement.

The changes come as new CEO Brian Niccol sets out his vision to make Starbucks cafés places where people want to hang out again.

• Starbucks is expanding its paid parental leave policy for baristas, the latest change under its new CEO.
• It'll offer up to 18 weeks of paid parental leave for birth parents and 12 weeks for nonbirth parents.
• However, baristas will reportedly get smaller raises this year due to the company's performance.

Starbucks is giving baristas up to three times the paid parental leave they previously had access to.

Starting in March, the coffeehouse giant said it will offer up to 18 weeks of paid leave for birth parents and up to 12 weeks for nonbirth parents.

The expanded benefit applies to US store employees averaging at least 20 hours of work a week. In general, Starbucks' parental leave policy applies to parents welcoming children by birth, foster placement, or adoption.

The company currently offers US store employees 6 weeks of paid parental leave and up to 12 weeks unpaid.

"Our benefit was already the best in retail, but after hearing from some partners who shared the leave as new parents wasn't adequate, we reviewed the program and have decided we're making a change," the chain's new CEO, Brian Niccol, wrote in his announcement Monday.

The expansion is the latest change amid Starbucks' turnaround effort under Niccol, who took over in September after leading Chipotle, which offers its workers up to 12 weeks of paid parental leave. Starbucks retail employees trying to unionize at various stores across the country have named increased parental leave as one of their requests.

Starbucks Workers United said its union partners had put forth a bargaining proposal seeking to double parental leave. "We are proud of this victory for all baristas," Starbucks Workers United partner Michelle Eisen said in a statement.

It's been a tough year for the chain, which saw sales decline in multiple quarters. In its fiscal fourth quarter, the company reported its steepest quarterly sales drop in four years.

On the heels of the company's disappointing quarterly reports, baristas will reportedly get smaller raises this year compared to last and many corporate employees will only get 60% of their bonuses, Bloomberg recently reported. Starbucks did not immediately respond to a request for comment.

Shortly after becoming CEO, Niccol, whose pay package includes up to $113 million in total compensation, wrote an open letter about his plan to improve the business.

"A visit to Starbucks is about connection and joy, and of course great coffee. Many of our customers still experience this magic every day, but in some places — especially in the U.S. — we aren't always delivering," he wrote. "It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better."

• Starbucks CEO Brian Niccol aims for a brewed cup of coffee to take less than 30 seconds to prepare.
• He told ABC that the coffee chain will be "hitting pause" on increasing prices for this fiscal year.
• Starbucks plans to enhance mobile orders and transparency around pricing, Niccol said.

Starbucks' new CEO, Brian Niccol, says he hopes customers will one day be able to get a brewed cup of coffee in less than 30 seconds.

In an interview with ABC's Good Morning America, the coffee boss said he wants to prioritize speed while also saying that there would be no more price rises for the time being.

Niccol's vision for what Starbucks will look like in five years' time includes a more efficient mobile order business with its own pick-up area.

"You're going to have an experience where when you walk in and you interact with the barista, it's going to be really quick for that brewed cup of coffee," he told ABC. "My hope is we can get you a brewed cup of coffee in less than 30 seconds."

Niccol joined Starbucks as its CEO in September after spending six years at the helm of Chipotle.

Unlike Chipotle, which announced menu price increases of about 2% on Wednesday, Niccol said: "The approach we've taken right now is we're going to hit the pause button on any pricing for this fiscal year."

"I still think there's an opportunity for us to simplify the pricing architecture right now — I don't love the fact that in our app right now, while you're doing this customization, it doesn't inform you what has happened to the price, so I want to get more transparent with the pricing," he said on GMA.

Niccol also said Starbucks would bring back some old staples like the Sharpies used to write names on cups and the coffee condiment bar.

The coffee chain CEO explained that they're investing in technology to provide more accurate times about when drinks will be ready for customers.

"We've got a lot of offerings that there's just one or two of these ordered a day," he said.

"The way I talk about it is, we're going to do fewer things, but we're going to do fewer things better."