
Starbucks announces a significant menu overhaul, cutting 30% of its offerings to streamline operations and boost profits.
At a Glance
- Starbucks plans to reduce its menu by 30% to simplify ordering and speed up service
- CEO Brian Niccol announced the changes during an earnings call
- The menu reduction aims to reverse declining sales and increase profitability
- New additions include an espresso-based cortado and the return of pistachio-flavored drinks
- Changes also include reintroducing condiment bars and personal touches on cups
Starbucks Streamlines Menu to Boost Efficiency
In a bold move to revitalize its brand and improve customer experience, Starbucks has announced plans to cut approximately 30% of its menu items. The decision, revealed by CEO Brian Niccol during a recent earnings call, comes as part of a broader strategy to simplify operations and address declining sales.
The coffee giant aims to enhance operational efficiency and speed up service by reducing the complexity of its menu. This move is expected to result in shorter wait times and a more focused customer experience, aligning with Starbucks’ core identity as a coffeehouse.
“We’ve been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics,” Niccol explained.
Adapting to Customer Trends
While specific items slated for removal have not been fully disclosed, Starbucks has already discontinued olive oil drinks and iced energy beverages. The company is not solely focused on cuts, however. New additions to the menu include an espresso-based cortado and the return of popular pistachio-flavored drinks.
This strategic shift allows Starbucks to be more responsive to cultural trends, as evidenced by the success of the Dubai Matcha drink.
The menu reduction is part of a broader initiative to revitalize the Starbucks brand. The company has reintroduced condiment bars in U.S. and Canadian locations, allowing customers to personalize their drinks. Additionally, baristas are now serving “for here” drinks in mugs or personal cups, and free refills for dine-in customers have been reinstated.
“In the coming months, you’ll see us begin to optimize our menu offerings, resulting in a roughly 30% reduction in both beverages and food SKUs by the end of fiscal year 2025,” Niccol stated, outlining the company’s long-term vision.
These changes come as Starbucks faces financial challenges, with U.S. sales at stores open for at least a year down 6% for the quarter ending December 29. The company hopes that by refocusing on its coffee roots, it can reverse this trend and boost profitability.
As Starbucks implements these changes, customers can expect to see the new streamlined menu in the coming months. The company’s leadership remains optimistic about the potential impact of these adjustments on both customer satisfaction and financial performance.