Starbucks’s new CEO wants to recapture the coffeehouse vibe

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. reestablish / ˌri ɪˈstæb lɪʃ / (v.) – to make something return to its earlier good condition or position
    Example:

    The restaurant is reestablishing its reputation as the best Italian restaurant after a recent problem.


  2. transactional / trænˈsæk ʃə nəl / (adj.) – relating to the kind of communication that’s focused on business or professional interaction rather than personal
    Example:

    Their conversation felt transactional, with no real connection, as they only talked about work and nothing personal.


  3. hectic / ˈhɛk tɪk / (adj.) – very busy and full of activity
    Example:

    The restaurant is hectic during lunch and dinnertime.


  4. linger / ˈlɪŋ gər / (v.) – to stay or remain in a place longer than the usual or expected time, especially when the person doesn’t want to leave yet
    Example:

    Students linger in the music room after class because the music teacher is friendly.


  5. dig / dɪg / (n.) – a statement or comment aimed to criticize, embarrass, or make fun of someone or something
    Example:

    I think he made a dig at my cooking when he said it was not burnt this time.


Article

Read the text below.

Starbucks’s new chairman and CEO said that he plans to focus on improving service—particularly during the morning rush—and reestablishing stores as gathering places as he takes over at the struggling coffee giant.


In an open letter on the Seattle coffee giant’s website, Brian Niccol said Starbucks is a beloved brand, but he found during conversations with employees and customers over the past few weeks a “shared sense that we have drifted from our core.”


Starbucks’s sales have fallen this year due to weaker U.S. store traffic and other issues. Niccol said improving the store experience for both baristas and customers will help turn that around.


“Many of our customers still experience this magic every day, but in some places—especially in the U.S.—we aren’t always delivering,” said Niccol, who was named Starbucks’s CEO in August. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”


Niccol, who was the CEO of Chipotle before coming to Starbucks, said the company “founded on a love for high-quality coffee” needs to make sure baristas have the proper tools and time to make drinks and personally deliver them to customers.


A rise in different channels—like mobile, drive-thru and delivery, which now make up 75% of orders—has made store operations more complex and added to wait times. Store design should acknowledge that change and make a clear distinction between “to-go” orders and in-store service, and stores should be an inviting place to linger with comfortable seating, he said.


Niccol also said Starbucks needs to ensure that it’s meeting the needs of morning customers.


“This means delivering outstanding drinks and food, on time, every time,” Niccol said.


Coffee is the heart of the company, Niccol said, and Starbucks’s marketing should remind customers of its coffee expertise. That may have been a subtle dig at recent product introductions at Starbucks, including bubble tea and energy drinks.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Starbucks’s new chairman and CEO plans to reestablish Starbucks stores as gathering places. Do you think coffee shops are good places to gather, meet, and spend time with family and friends? Why or why not? In your country, are cafes and coffee shops also popular places for gathering? Why do you think a lot of people gather in such places? Discuss.
  • If you were Starbucks’s CEO in your country, what would you do to increase the company’s sales? Do you think redesigning the coffee shops will attract more customers? Discuss.

Discussion B

  • Starbucks started offering bubble tea and energy drinks. Should coffee shops like Starbucks focus mainly on coffee, or is it okay for them to offer a variety of drinks? Why? Discuss.
  • Brian Niccol said Starbucks’s marketing should remind customers of its coffee expertise. What do you think his statement meant? Why do you think he said this? Do you agree or disagree? Discuss.