Starbucks CEO Brian Niccol talks cafe renovations, customer service

Two years into Starbucks‘ turnaround, CEO Brian Niccol is prioritizing makeovers for the coffee chain’s cafes and improving the customer experience as its sales rebound.

“Starbucks is back,” Niccol said on CNBC’s “Squawk Box” on Thursday.

Under Niccol’s leadership, Starbucks has tried to win back coffee drinkers by returning its roots. The plan, called “Back to Starbucks,” has emphasized improving the experience for both customers and baristas and reminding lapsed loyalists why they used to love the coffee chain.

The changes come as rivals have tried to appeal to coffee drinkers with lower prices and convenience.

The current stage of the turnaround focuses on improving its coffee houses. Niccol said more than 1,000 renovations have been completed over the last nine months, with thousands more planned for the next fiscal year.

Most of the makeovers focus on superficial touches, like adding more seating and softer lighting, with the goal of making the cafes more welcoming to customers. The changes bring back “the Starbucks vibe,” according to Niccol.

Another key step is continuing to improve the customer experience. More than a year ago, the company began training baristas on its new “Green Apron Service” program, designed to create more positive interactions with customers. But Starbucks is aiming high, with an ambition to “be the world’s greatest customer service company,” Niccol wrote in a memo to employees on Thursday.

The Back to Starbucks strategy has begun to pay off for Starbucks. In the company’s fiscal third quarter, its same-store sales rose 7.9%, lifted by strong performance in the U.S., its biggest market.

“As a result of this work, our business has made the turn,” Niccol wrote in the company memo. “We have returned to growth, delivered positive global comps and improved margins. We have positioned Starbucks to perform for the long term.”

Since Niccol was announced as Starbucks’ next CEO in 2024, shares of the company have risen about 30%. The S&P 500 has climbed 42% over the same period.