Saving Starbucks
Who knew a seafaring classic novel about fool hearty revenge would inspire the name that is recognized across 80 countries. Starbuck was the voice of reason in the classic, and it does seem like Starbucks is listening to reason once again.
The latest news on one of the most iconic brands is that they are realigning at the tune of 900 stores and hundreds of layoffs. The retail powerhouse, like many top tier companies has experienced an overall decline in revenues for the past six quarters. Some reports state an 8% decline in stock value in 2025 alone. But that is only half of the story…
As a quiet observer and fan of the company, over a span of 10 odd years, I saw a couple of subtle shifts that changed the overall atmosphere of my favorite U.S. coffee house. I started going to Starbucks to connect with friends, catch up w/ local events and see other smiling faces. The atmosphere was so relaxed and comfortable that sometimes I would come in with my MacBook Pro midday and get some work done while having a delicious White Chocolate Mocha Frappuccino. That homey, comfy unpretentious feeling was slowly drown out by loud music, nonstop car horns buzzing through the driveway, and less frequent conversations. You really couldn’t have a meaningful chat when you have to yell to be heard.
n 2023–2024, over 70% of U.S. Starbucks transactions were drive-thru or mobile. Starbucks was no longer where you went to connect comfortably. It became a place you pick up a quick latte and score reward points without leaving your car. Brian Niccol might be sensitive to this quiet observation because his latest initiative Back To Starbucks seems to be headed towards the hotspot’s glorious unrivaled past success. I couldn’t be happier. The new CEO might be saving Starbucks. This pivot will steer the coffee house, hopefully back to being our third home outside of home and work.
Starbucks is currently trading 30% below its all time high, which sounds like a bargain, if Niccol is able to Mullaly the organization. I say this because of the similarity in approach between the two CEOs. Mulally focused on unifying Ford’s culture and simplifying the business, and not just slashing for Wall Street optics.
Niccol is doing the same at Starbucks: closing underperforming stores, yes, but mainly reinvesting in frontline culture while reaffirming the company’s commitment to serving communities through the Green Apron Service mission. However, Starbucks is still quite profitable while Ford, when Mulally took the reins was 12.6 Billion in the hole. A very important distinction to make.
I think Niccol can pull it off with some important caveats to consider.
Culture alignment (partners, especially those in unions, need to feel part of the vision). If everyone is onboard, especially customer facing employees then the Green Apron Service has a good chance of actually improving the stores. Major win!
Maybe borrow a trick or two from OG Mulally by establishing weekly business plan reviews. Mulally also created the “One Ford” mantra which restored investor trust through unabashed transparency. It was a one pager that clearly detailed how he was going to save Ford. This is the long game for interested parties. At best, a 12–24 month process. Mulally said it best when he said
“People want to know where you’re going, why it matters, and how you’ll get there.”
Rooting for Starbucks. Maybe we won’t ever have to say goodbye, and they’ll bring back my beloved White Chocolate Mocha Frappuccino..
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