Starbucks, one of the largest coffeehouse chains in the world, announced recently a menu revision aimed at increasing efficiency and improving customer service. Select, less-popular beverages will no longer be available starting March 4, a decision designed to cut down on the increasingly long waits and maintain consistency across stores.
Menu Reductions: The Reason Behind the Reduction
Starbucks was founded in Seattle, Washington in 1971. Recent challenges have included changes brought about by COVID-19, decreased foot traffic and the emergence of unionization. The new menu is part of an overall plan to deal with these challenges, and return the focus of Starbucks on its core values: quality coffee and efficiency of service. A company press release explains that this decision is based on the fact the beverages removed are not often ordered and may be complicated to prepare.
Starbucks announced that it would simplify its menu in order to concentrate on more popular, yet well-executed items. This will allow for more innovation, reduce waiting times, increase quality, and be in line with Starbucks’ core values.
Starbucks has re-aligned its strategy to emphasize the company’s commitment to excellence in coffee and speed, while prioritizing consistency.
Which Starbucks beverages are being discontinued by Starbucks?
These drinks include: several Frappuccino blend beverages, Royal English Breakfast Latte, and White Hot Chocolate. This includes:
- Iced matcha Lemonade
- Espresso Frappuccino
- Caffè Vanilla Frappuccino
- White Chocolate Mocha Frappuccino
- Java Chip Frappuccino
- Chai Crème Frappuccino
- Caramel Ribbon Crunch Crème Frappuccino
- Double Chocolaty Chip Crème Frappuccino
- Chocolate Cookie Crumble Crème Frappuccino
- White Chocolate Crème Frappuccino
- White Hot Chocolate
- Royal English Breakfast Latte
- Honey Almondmilk Flat white
ANGELA WEISS / AFP/Getty Images
Starbucks Restructuring includes layoffs of corporate employees
Starbucks, in addition to its menu change, is also restructuring their corporate structure, which includes layoffs of over 1,000 employees. As explained by the new CEO Brian Niccol who assumed control in September, Starbucks’ decision is to streamline operations and develop a more fluid organizational structure. Starbucks laid offs aim at simplifying operations and creating a more efficient and agile structure. This job cut is part of an overall “Back to Starbucks”, strategy that was unveiled by Starbucks in January.
Niccol, in a memo to his employees, explained that the company was simplifying its structure. “We’re removing layers and duplicates and creating smaller and more agile teams,” Niccol said. “We want to be more efficient, have greater accountability, and reduce the complexity of our business. “Our goal is to be more focused, and have a greater impact on the priorities we set.”
Back to Starbucks is the strategy that signals the return to Starbucks’ fundamentals, which includes a focus on improving customer service in stores (including mobile order pickup) as well as operational efficiency. Niccol is working hard to re-energize profitability and foster a positive culture at work after recent challenges. Niccol focuses on bringing back a coffeehouse feel and decreasing cafe wait times.
Starbucks will continue to hire for positions that align with its evolving organizational structure. This shows a commitment to future growth and adaptability.
Starbucks Strategic Shifts: The Executive’s Perspective
Brian Niccol: Starbucks CEO and Chairman. The size of our organization can be a problem, as we have too many managers, small teams and roles that are primarily focused on coordination.
Rachel Ruggeri (last Year) Chief Financial officer at Starbucks We were not able to reverse the traffic trend despite increased investment. This resulted in pressure on both top line and bottom line. While our efficiency efforts continued to produce according to plan, they were not enough to outpace the impact of the decline in traffic…We are developing a plan to turn around our business, but it will take time. Ruggeri continued, “we increased our dividend because of this.”
Timeline for Implementation
Starting March 4, the new menu, which is more streamlined, will go into effect. On the Tuesday following, the layoffs affected by corporate were announced.
Starbucks’ strategic change reflects its commitment to improve the experience of both customers and employees. Starbucks aims to strengthen its global leadership position by simplifying its menu, streamlining its operations and focusing its efforts on core strengths.