Starbucks’ New CEO Is Psyched to Deliver Again a Espresso Store Staple

• Starbucks CEO Brian Niccol cannot get sufficient of the chain’s ceramic mugs for in-store clients.
• He talked about them thrice in a Tuesday earnings name, throughout which the chain reported a 4% gross sales dip.
• The reintroduced mugs are a part of Niccol’s efforts to make Starbucks a extra inviting place.

Brian Niccol cannot get sufficient of Starbucks’ ceramic mugs.

Because the CEO moved from Chipotle for the highest job in September, he is centered on making Starbucks extra inviting for purchasers to hang around.

Niccol launched a number of adjustments, together with having extra comfy chairs within the cafés and serving clients their espresso in ceramic mugs once more.

On the corporate’s Tuesday earnings name, he introduced up the mugs 3 times.

“We reintroduced ceramic mugs and handwritten notes on cups to higher join with clients and elevate the café expertise for many who select to remain and work,” he stated in his opening statements.

He then coined the time period “mug hug,” referring to clients having fun with their espresso within the cafés.

“They’re holding on to that ceramic mug they usually’re having fun with their second within the café, and there is not all this congestion surrounding the counter. So, it is simply a way more nice, peaceable espresso expertise,” Niccol stated.

He stated that the chain has been working to clear counter area from a deluge of cell orders.

Towards the top of the decision, he stated the ceramic mugs and different “for-here” tableware make the shopper really feel like Starbucks is a spot the place they’ll “decelerate,” join with others or take time for themselves.

It is unclear when Starbucks stopped serving in-store espresso in mugs. The corporate has continued to make use of them in some shops, together with internationally. The corporate’s annual studies final featured photographs of the ceramic mugs in 2006, after which they displayed disposable cups and to-go baggage.

The corporate didn’t reply to BI’s request for remark.

Starbucks’ cups have been a big a part of its model identification. It coined November 17 its “Pink Cup Day,” when clients can get reusable 16-ounce purple cups with the acquisition of a vacation drink.

Starbucks is engaged on a slew of adjustments

In an inner memo obtained by BI on Tuesday, the chain directed employees to begin writing messages to clients on single-use espresso cups.

“Handwritten notes on our cups have confirmed to be a easy, but significant motion that fosters moments of reference to our clients,” the memo learn. “To construct on that, we’re updating our expectation for writing on cups. Beginning 2/24, the expectation will shift to incorporate a customized be aware on all cups.”

The corporate recommended staff write a easy affirmation, resembling “You are superb,” or “Hey once more” for regulars.

The espresso chain, which has been combating sliding gross sales in latest quarters, appears to be turning round. Comparable gross sales fell 4% for the quarter ended December 29, the corporate stated on Tuesday, a smaller decline than predicted by analysts.

On the earnings name, Niccol and Starbucks’ finance chief stated different adjustments slated for this yr embrace decreasing the variety of objects on the menu, introducing a brand new algorithm for cell orders, and including digital menu boards.

The corporate’s inventory was flat after hours. It is up 6.7% within the final yr.