Starbucks is going retro to make customers feel welcome again

new York
CNN
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Starbucks is bringing back handwritten names in Sharpie on cups and self-service sugar and cream stations to win back customers.

Baristas handwriting customers' names and messages with markers on their drink orders will make a comeback, new Starbucks CEO Brian Niccol said on a quarterly earnings call Wednesday. It's part of his strategy to recreate a coffeehouse atmosphere at Starbucks and give it a “human touch.”

“The number I heard was about 200,000 Sharpies that we need to track down,” Niccol said in an interview with CNBC on Wednesday. “Unfortunately, it’s not as easy as just going to Staples and picking up some Sharpies.”

Starbucks also plans to reintroduce self-service condiment stations in stores. The company removed them at the start of the pandemic in 2020.

“Our customers ask for it and our baristas say it helps them” expedite orders, Niccol said on the call.

It's part of a series of changes Starbucks is making under Niccol, who took over the troubled company in September.

Starbucks reported a third straight quarter of declining sales and declining customer visits on Wednesday.

Starbucks' global sales at stores open at least a year fell 7% in the most recent quarter, and the number of customer transactions fell 8%.

“Our financial results were very disappointing,” Niccol said. “It is clear that we need to fundamentally change our strategy to win back customers and return to growth.”

Starbucks drinks made with soy, oat, almond or coconut milk no longer cost customers extra.

Starting next week, Starbucks customers will no longer pay to add dairy-free milk to their orders. The company said removing the non-dairy milk surcharge means customers who apply for it will pay about 10% less than before.

Orders containing milk substitutes have increased at Starbucks in recent years, as have non-dairy alternatives at grocery stores. In 2021, Starbucks added oat milk to its menu. At Starbucks, non-dairy milk is the second most common order change after adding a shot of espresso.

Starbucks is also reducing promotional offers on its mobile app to entice customers to pay full price for its coffees and teas. Niccol wants to reposition Starbucks as a premium brand that avoids discounts.

Although discounts are being scaled back, Niccol said the company has no plans to increase prices next year. Starbucks has raised prices in recent years, causing some customers to turn away from the chain.

Starbucks also announced this week that it would be removing its controversial olive oil-infused drinks from the menu less than a year after they were introduced.

The range of “Oleato” drinks will be removed from Starbucks menus in the US and Canada starting in early November. This is part of Niccol's plans to pare down a menu he recently described as “overly complex”.