New Starbucks Chairman and CEO Brian Niccol wants customers to have their orders hand-delivered by a barista in four minutes or less, a goal that will be central as he tries to reinvigorate the company’s flagging sales. business.

“We need to make it easier for our customers to get a cup of coffee,” Niccol said during his first conference call with investors since joining Starbucks in September.

Niccol said about half of the company’s transactions are now completed in four minutes or less. He wants to focus on the bottlenecks that hold up the other half, from understaffing during peak periods to slow food-cooking ovens to Starbucks’ overly complex menu.

“When you start using this metric, you quickly find out where our stores have a real problem,” Niccol said. “We’re going to be maniacs about taking care of it.”

Niccol said Starbucks will start with faster counter service, followed by mobile ordering and drive-thru ordering.

Niccol said Starbucks needed to reduce its food and drink offerings so baristas could focus on constantly making fewer things.

Oleato leaving

First on the chopping block: Starbucks’ Oleato olive oil-infused drinks, which will be discontinued at most locations starting in early November. They will still be available in select locations in Italy, Japan and China.

The move severs the connection with longtime Starbucks leader Howard Schultz, who came up with the idea for Oleato after visiting an olive oil producer in Sicily. Schultz called the drink a “transformational idea” when he introduced it to Italy in early 2023. It went on sale in the United States earlier this year.

Niccol also said the process of customizing drinks should be simpler. Currently, the company offers a myriad of ways to customize each drink, confusing customers and sometimes forcing baristas to prepare a drink in a less-than-ideal way.

No additional costs

On Wednesday, Starbucks made a first attempt to streamline the customization process by announcing it would stop charging extra for using non-dairy beverages in its drinks. Starting November 7, when Starbucks’ holiday menu is scheduled to be introduced, customers will be allowed to choose soy milk, oat milk, almond milk or other varieties at no extra cost.

Starbucks said that replacing plant-based milk with plant-based milk is the second most requested customization in its store after adding espresso. But the costs can add up. At a Starbucks in Michigan on Wednesday, it cost 70 cents to switch to almond milk in an average Pumpkin Spice Latte.

Other changes

Starbucks said it would reduce the number of new stores and renovations planned over the next year to give it time to consider a store overhaul.

Niccol said it was crucial to return Starbucks to the community cafe that it was. Stores will bring back ceramic mugs for in-store customers and Sharpie pens so baristas can write a message on a customer’s order. Stores will also have more comfortable seating and separate areas for mobile order pickup.

“I want you to feel like you’ve entered a special space,” Niccol said.

Niccol’s comments come as Starbucks reports a disappointing end to its 2024 fiscal year. Starbucks said its revenue fell 3%, to $9.1 billion, between July and September, due to the slowdown in customer traffic in the United States and China. For the full year, Starbucks said its revenue rose less than 1 percent, to $36 billion.

The Seattle-based coffee giant released poor financial news last week and said it would suspend its financial guidance for its 2025 fiscal year to give Niccol time to evaluate the company.