Starbucks CEO says chain was operated like a factory

(SeaPRwire) –   When Brian Niccol became Starbucks’ CEO 18 months ago—with the goal of reviving the company’s 1990s and early 2000s heyday—he was taken aback to find the coffee chain felt more like a factory than a welcoming gathering place.

On a recent episode of Semafor’s “The CEO Signal” podcast, Niccol shared that when he initially led the company in late 2024, he visited multiple stores and saw that the chain’s focus on handling high order volumes had caused it to drift from its identity as a cozy café. His “Back to Starbucks” plan, launched shortly after he took over, aimed to bring the brand back to its origins as a “third place” where customers could spend time.

“We became overly focused on efficiency, running the business like a manufacturing plant instead of acknowledging that this is a customer service experience—one where we craft excellent drinks and deliver them promptly,” Niccol stated.

While Starbucks’ stock has remained nearly the same since Niccol took charge a year and a half ago, the former Chipotle CEO has been diligently working to revive the unique appeal that once defined the “third space.” He realized the company had taken some successful elements too far.

A to-go culture that went too far

Niccol joined a company that, in some respects, was strained by the popularity of its online ordering—still the source of most of the chain’s orders, with 40% from drive-thru and 30% from mobile. In early 2024, then-CEO Laxman Narasimhan noted that customers were abandoning online orders after placing them because they faced long waits for fulfillment during peak commuting times. The extensive Starbucks menu and customers’ ability to customize orders overwhelmed baristas and slowed down service.

Early in his time as CEO, Niccol talked to customers who missed the comfortable seating Starbucks once offered and the personal interactions where baristas would recognize and chat with them. Baristas suggested bringing back condiment bars so customers could add their own cream and sugar, which would ease the burden on workers handling more complex orders.

“The feedback I received was that we’d made the job more complex than it needed to be,” Niccol said. “It was a reminder that we need to refocus on decisions that have a real impact in stores and ensure we understand how those decisions are implemented on the ground.”

The company acted on those and other suggestions, adding back seats to thousands of stores and reinstating condiment bars that had been removed during the pandemic.

Thus far, the “Back to Starbucks” plan seems to be effective. The company announced a 4% year-over-year rise in same-store sales and a 5% increase in quarterly revenue. However, profits declined as the company dealt with tariffs and hired more staff to man its stores.

“We’re happy with our progress, and we feel we’re ahead of schedule—we’re confident in our direction,” Niccol told investors in January. “But we also know we’re still in the middle of our turnaround.”

The path back to Starbucks

Niccol emphasized that the heart of the numerous changes to the Starbucks experience was balancing coffee with a strong focus on customer service.

“If you’re not working on initiatives that ultimately improve the store experience for our customers and partners, you’re probably focused on the wrong things,” he stated.

Niccol implemented the “Back to Starbucks” plan with quick, immediate changes followed by more lasting structural adjustments. Stores added more wall outlets and started offering ceramic cups to customers who wanted to stay. Baristas were instructed to write personalized notes on paper to-go cups. As part of a brand update, workers also began wearing black shirts under their green aprons.

Behind the scenes, Starbucks cut its menu by 30% to reduce baristas’ workload. It also launched an AI-powered tool to help with equipment troubleshooting, train baristas on drink preparation, and prioritize orders to boost efficiency.

Not all baristas support the changes, however. Over 1,000 unionized baristas went on strike in November 2025, calling for more staffing to reduce long customer wait times and allowing current employees to work more hours to qualify for benefits. Last May, more than 2,000 baristas protested the company’s dress code, arguing workers should have input on their attire.

Starbucks did not reply to ’s request for comment.

Niccol stated that the “Back to Starbucks” changes have already begun to shift the company’s reputation. During an interview at the Wall Street Journal Leadership Institute in December 2025, he mentioned reading a Reddit thread where Starbucks job candidates were asking about interview questions. Other users—likely Starbucks employees—advised candidates to be ready to discuss customer service.

“If you don’t enjoy customer service, you probably won’t like working at Starbucks. We’re in the process of getting people to understand that,” Niccol said. “When I saw that on the Reddit thread, I thought, ‘Alright, we’re making progress on defining the service standards we want.’”