Brian Niccol stated that the business would reassess its pricing and that it needed to “fundamentally change.”
Statistics showed that Starbucks patrons have reduced their expenditures as the cost of living has increased, especially in China.
However, Mr. Niccol also acknowledged that there were problems in its stores, including customer bottlenecks and a lack of employees.
According to the corporation, between July and September, worldwide sales fell by 7%. In China, where the economy is struggling, the decline was more severe, with sales down 14% over the same time period.
Starbucks’ chief financial officer, Rachel Ruggeri, stated, “We were unable to alter the course of our traffic decline despite our increased investments.”
Mr. Nichol promised to “get back to Starbucks” in order to boost the company’s faltering sales.
He stated, “We will streamline our excessively intricate menu, correct our pricing structure, and make sure every customer feels Starbucks is worth it each and every time they visit.”
In order to avoid overpowering the café experience, he continued, we must improve mobile order and payment.
